Moody’s Investors Service upgraded equipment ABS notes sponsored by Amur Equipment Finance, specifically upgrading three classes of notes in Amur Equipment Finance Receivables IX LLC, Series 2021-1 (Amur 2021-1); four classes of notes in Amur Equipment Finance Receivables X LLC, Series 2022-1 (Amur 2022-1); and five classes of notes in Amur Equipment Finance Receivables XI LLC, Series 2022-2 (Amur 2022-2). The notes are backed by a pool of fixed-rate loans and leases secured primarily by trucking, transportation and construction equipment.
The complete rating actions are as follows:
Issuer: Amur Equipment Finance Receivables IX LLC, Series 2021-1
- Class D Notes, upgraded to Aaa (sf); previously, on Aug. 9, upgraded to Aa1 (sf)
- Class E Notes, upgraded to A1 (sf); previously, on Aug. 9, upgraded to Baa1 (sf)
- Class F Notes, upgraded to Ba1 (sf); previously, on May 4, 2022, upgraded to Ba2 (sf)
Issuer: Amur Equipment Finance Receivables X LLC, Series 2022-1
- Class C Notes, upgraded to Aa1 (sf); previously, on Aug. 9, upgraded to Aa2 (sf)
- Class D Notes, upgraded to A1 (sf); previously, on Aug. 9, upgraded to A3 (sf)
- Class E Notes, upgraded to Baa3 (sf); previously, on Jan. 24, upgraded to Ba1 (sf)
- Class F Notes, upgraded to B1 (sf); previously, on Jan 24, upgraded to B2 (sf)
Issuer: Amur Equipment Finance Receivables XI LLC, Series 2022-2
- Class B Notes, upgraded to Aa1 (sf); previously, on Sept. 21, 2022, definitive rating assigned Aa3 (sf)
- Class C Notes, upgraded to A1 (sf); previously, on Sept. 21, 2022, definitive rating assigned A2 (sf)
- Class D Notes, upgraded to Baa2 (sf); previously, on Sept. 21, 2022, definitive rating assigned Baa3 (sf)
- Class E Notes, upgraded to Ba2 (sf); previously, on Sept. 21, 2022, definitive rating assigned Ba3 (sf)
- Class F Notes, upgraded to B2 (sf); previously, on Sept. 21, 2022, definitive rating assigned B3 (sf)
The rating actions were primarily driven by the continuous buildup of credit enhancement, including overcollateralization and a non-declining reserve account. The notes feature sequential payment structures with the higher priority notes benefitting from the subordination of notes with lower payment priority. Other considerations include the deals’ seasoning and the high exposure to the trucking and transportation industry, which is generally cyclical.
