Kroll Bond Rating Agency assigned preliminary ratings to three note classes of Securitized Equipment Receivables Trust 2017-1. The notes are supported by the residual certificates from the Ascentium Capital Equipment Receivables 2015-2 Trust transaction (ACER 2015-2) that closed on October 28, 2015.

ACER 2015-2 and SERT 2017-1 feature a “full turbo” waterfall, whereby all collections after expenses and interest payments will pay down principal. Ascentium Capital previously sponsored six term ABS transactions, two of which have been paid in full.

The transaction represents Ascentium’s second equipment lease re-securitization. The company’s first re-securitization was issued in April 2016.

As of March 1, 2017, the underlying aggregate discounted contract principal balance of the portfolio is approximately $167.0 million. The portfolio is comprised of 4,695 contracts and 4,280 obligors. The average discounted contract balance is approximately $35,559 and the average remaining term is approximately 37 months. The maximum exposure to an obligor is approximately 0.56% of the aggregate discounted contract balance. The securitization is based on the projected equipment loan and lease cash flows discounted at a rate of 4.55%.