KBRA assigned preliminary ratings to five classes of notes issued by PEAC Solutions Receivables 2024-2 (PEAC 2024-2), an equipment ABS transaction. PEAC 2024-2 represents PEAC Solutions’ 14th equipment ABS and the second PEAC Solutions equipment ABS to include Xerox receivables.

The ratings are as follows:

PEAC 2024-2 will issue five classes of notes, including a short-term tranche. Credit enhancement includes excess spread, a reserve account, overcollateralization and subordination (except for class C Notes). The overcollateralization is subject to a target equal to 16.65% of the current ASV and a floor equal to 1.00% of the initial ASV. The reserve account is funded at 0.50% of the initial ASV and is non-amortizing.

The full report is available online.