KBRA Assigns Preliminary Ratings to MassMutual Asset Finance’s 17th Equipment ABS



Kroll Bond Rating Agency assigned preliminary ratings to four classes of notes issued by MMAF Equipment Finance LLC 2022-A (MMAF 2022-A), an equipment asset-backed security transaction sponsored by MassMutual Asset Finance.

MMAF 2022-A represents the 17th equipment ABS sponsored by MassMutual Asset Finance, which is a wholly-owned subsidiary of Massachusetts Mutual Life Insurance Company and has an operating history dating back to 2003.

The MMAF 2022-A transaction is secured by a portfolio of equipment lease and loan contracts, together with interests in the related equipment and other collateral (together, the “financed units”). The financed units include various types of equipment, including transportation equipment, telecommunications equipment, federal energy equipment, computers, medical equipment, material handling equipment, vending equipment, corporate aircraft, marine equipment, construction equipment, intermodal containers, above-ground mining equipment, machinery and equipment, software, energy management equipment, service vehicles and furniture, fixtures and equipment. MMAF 2022-A will issue four classes of notes. The notes will benefit from credit enhancement in the form of overcollateralization, excess spread and a reserve account.

The aggregate securitization value (ASV), which represents the discounted value of the cashflows from the financed units, is approximately $937 million, as of the Feb. 28, 2022, cut-off date and based on the statistical discount rate of 5.5%. The ASV includes 414 financed units to 75 obligors. The average financed unit balance is approximately $2.3 million and the average obligor exposure is approximately $12.5 million. The maximum obligor exposure is approximately $77 million or approximately 8.2% of the ASV.


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