KBRA assigned preliminary ratings to five classes of notes issued by PEAC Solutions Receivables 2024-2 (PEAC 2024-2), an equipment ABS transaction. PEAC 2024-2 represents PEAC Solutions’ 14th equipment ABS and the second PEAC Solutions equipment ABS to include Xerox receivables.
The ratings are as follows:
| Class | Current Rating | Cutoff Date Balance |
| A-1 | K1+ | 107,179,000 (USD) |
| A-2 | AAA | 168,782,000 (USD) |
| A-3 | AAA | 76,961,000 (USD) |
| B | AA | 18,166,000 (USD) |
| C | A | 23,007,000 (USD) |
PEAC 2024-2 will issue five classes of notes, including a short-term tranche. Credit enhancement includes excess spread, a reserve account, overcollateralization and subordination (except for class C Notes). The overcollateralization is subject to a target equal to 16.65% of the current ASV and a floor equal to 1.00% of the initial ASV. The reserve account is funded at 0.50% of the initial ASV and is non-amortizing.
