Moody’s Ratings has upgraded two classes of notes issued by Clarus Capital Funding 2024-1.
Following a comprehensive review through its rating committee process, Moody’s upgraded the following classes:
- Class B Notes: upgraded to Aaa (sf) from Aa2 (sf)
- Class C Notes: upgraded to Aa2 (sf) from A2 (sf)
The asset-backed securitization is supported by a diversified pool of mid- and large-ticket equipment loans and leases spanning multiple sectors, including manufacturing, aerospace, construction and technology.
Moody’s cited several key drivers behind the upgrades, including the build-up of credit enhancement through the transaction’s sequential pay structure, consistent collateral performance, and the absence of cumulative net losses since closing. The agency also noted the overcollateralization and presence of a reserve account as additional strengths.
“These upgrades reflect the disciplined structure and strong performance of the Clarus 2024-1 transaction,” Mike Eisenstein, chief financial officer of Clarus Capital, said. “We believe Moody’s rating actions validate our focus on rigorous credit underwriting, structural protections and careful portfolio construction. We appreciate Moody’s thorough review of the transaction.”
