Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to six note classes of Axis Equipment Finance Receivables IV LLC. The notes are newly issued asset-backed securities backed by a portfolio of equipment leases and loans.

This transaction is Axis Capital’s (“Axis” or the “Company”) fourth securitization supported by small and mid-ticket general equipment. The transaction features a payment waterfall, whereby all collections after expenses and interest payments will pay down principal, until the target credit enhancement (8.00%) as a percentage of the current collateral balance is reached.

As of September 30, 2016 (the “Initial Cutoff Date”), the collateral consists of equipment loans and leases totaling approximately $180.5 million. The balance of the collateral is subject to certain eligibility criteria and will be funded during a 90-day period (“Prefunding Period”) following the closing date and may not exceed $30.0 million. The discounted balance (“Discounted Contract Balance”) for the collateral as of the Initial Cutoff Date is based on the projected equipment loan and lease cash flows discounted at a rate of 4.60%.

KBRA analyzed the transaction using the Equipment Lease & Loan Methodology published on June 30, 2012.