Kroll Bond Rating Agency (KBRA) has assigned preliminary ratings to five classes of notes issued by NMEF Funding 2025-A, LLC (NMEF 2025-A), an equipment asset-backed securities (ABS) transaction sponsored by North Mill Equipment Finance.

NMEF 2025-A represents North Mill’s ninth equipment ABS issuance, backed by a pool of equipment loans and leases totaling approximately $456.69 million in discounted cash flows. The securitization benefits from credit enhancements, including a reserve account, overcollateralization, excess spread, and note subordination.

North Mill, an independent equipment finance company, has expanded its portfolio beyond transportation-related assets to include non-transportation originations such as medical and franchise equipment. As of Dec. 31, 2024, the company reported a total outstanding equipment contract balance of $1.2 billion.

The credit enhancement structure of NMEF 2025-A includes an overcollateralization target of 17.20% of the current pool balance and a floor of 0.50% of the initial pool balance. Additionally, a non-amortizing reserve account is funded at 1.00% of the initial pool balance at closing.

KBRA’s rating assignments are based on its Equipment Lease & Loan ABS Global Rating Methodology, its Global Structured Finance Counterparty Methodology, and its ESG Global Rating Methodology. Further details, including sensitivity analyses and disclosures related to the rating decision, are available in KBRA’s full rating report.

North Mill was originally founded as Equilease Financial Services in 1957 and was later acquired and rebranded in 2012 by Colford Capital Holdings. In 2018, InterVest Capital Partners Inc. acquired North Mill from Colford Capital Holdings.

KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission and other global regulatory bodies. For more information and access to the full rating report, visit www.kbra.com.