Kroll Bond Rating Agency (KBRA) has assigned preliminary ratings to nine classes of notes issued by SCF Equipment Leasing 2025-1 LLC and SCF Equipment Leasing Canada 2025-1 Limited Partnership, collectively referred to as SCF 2025-1. This marks the 13th equipment asset-backed securities (ABS) transaction sponsored by Stonebriar Commercial Finance LLC (SCF).
The transaction is backed by a diverse portfolio of equipment lease and loan contracts secured by essential-use assets spanning industries such as transportation, medical, energy and manufacturing. Additionally, the transaction includes equity interests in entities formed to own aircraft and portfolio interest certificates related to motor vehicle leases.
Portfolio and Transaction Highlights
- The portfolio, valued at approximately $969.65 million as of Nov. 30, 2024, includes 56 contracts involving 33 obligors.
- Average contract balance: $17.32 million.
- Largest exposure to a single obligor: $132.11 million (13.62% of the portfolio).
- Weighted average internal rate of return: 10.28%.
SCF, headquartered in Plano, TX, has originated $14 billion in secured loans and leases since its inception in 2015, with a net investment of $6.1 billion as of year-end 2024.
Credit Ratings Table
Below is the breakdown of KBRA’s preliminary ratings for the SCF 2025-1 notes:
| Class | Current Rating | Rating Action | Cutoff Date Balance (USD) | CUSIP |
| A-1 | K1+ (sf) | Preliminary | 93,500,000 | 78437DAA8 |
| A-2 | AAA (sf) | Preliminary | 233,000,000 | 78437DAB6 |
| A-3 | AAA (sf) | Preliminary | 366,801,000 | 78437DAC4 |
| B | AA+ (sf) | Preliminary | 67,876,000 | 78437DAD2 |
| C | A+ (sf) | Preliminary | 58,179,000 | 78437DAE0 |
| D | BBB+ (sf) | Preliminary | 58,179,000 | 78437DAF7 |
| E | BBB (sf) | Preliminary | 29,090,000 | 78437DAG5 |
| F | BB+ (sf) | Preliminary | 29,090,000 | 78437DAH3 |
| G | NR | Not Rated | 24,241,000 | 78437DAJ9 |
Credit Enhancement
The transaction benefits from structural features including overcollateralization, excess spread, reserve accounts and subordination for senior classes.
About KBRA
KBRA is a global credit rating agency recognized by regulatory authorities in the U.S., Europe and Canada. For further details on the ratings and methodologies, visit kbra.com.
For additional disclosures and analytical contacts, refer to KBRA’s official report.
