Verdant Commercial Capital, a division of Axos Bank, the nationwide bank subsidiary of Axos Financial, announced that Moody’s Ratings upgraded five classes of notes across its Verdant Receivables 2023-1 and 2024-1 equipment asset-backed securitizations, reflecting strong collateral performance, rising credit enhancement, and continued stability in Verdant’s equipment finance platform.
Moody’s upgraded three classes in the 2023-1 transaction and two classes in the 2024-1 transaction following a full review of both transactions.
Upgraded classes
Verdant Receivables 2023-1 LLC
- Class B: Aaa (sf)
- Class C: Aa1 (sf)
- Class D: A3 (sf)
Verdant Receivables 2024-1 LLC
- Class B: Aa1 (sf)
- Class C: Aa3 (sf)
Moody’s cited sequential pay structures, non-declining reserve accounts, and increasing overcollateralization as drivers of the actions, supporting continued credit enhancement growth across both transactions. The agency also pointed to sustained collateral outperformance, with cumulative net loss expectations for both transactions reduced to 1.50%.
“These upgrades underscore the strength and consistency of Verdant’s vendor platform,” said Mike Rooney, Verdant’s chief executive officer. “Our disciplined underwriting and focus on essential-use equipment continue to deliver high-quality assets to the ABS market. We appreciate Moody’s recognition and the confidence it reflects from our investors.”
No other classes were affected, as enhancement levels for the remaining tranches remain consistent with current ratings.
“The continued growth in credit enhancement across both transactions reflects the resilience of our structures and the stability of our servicing platform,” said Matt Mahoney, Verdant’s vice president of Treasury. “We remain focused on maintaining strong performance and supporting the long-term success of our securitization program.”
