Kroll Bond Rating Agency assigned preliminary ratings to InStar 2021-1 Class A notes, Class B notes and Class C notes issued by InStar Leasing III, a railcar leasing securitization.

The securitization is collateralized by a portfolio of 3,138 tank and freight railcars with an aggregate appraised value of $322.23 million. The portfolio includes 1,622 tanks cars with an appraised value of $207.5 million (64% by value) and 1,516 non-tank railcars with an appraised value of $115.2 million (36% by value). As of Nov. 30, 2020, approximately 80.9% of leases are on full-service leases, approximately 17.6% are on net leases and approximately 1.5% are on per diem leases. The portfolio is 100% utilized, as none of the cars are currently off lease. InStar Leasing III is the issuer and will be responsible for covering maintenance costs for the railcars in the portfolio that are under full-service lease contracts.