Kroll Bond Rating Agency assigned preliminary ratings to Trinity Rail Leasing 2020, Series 2020-2 Class A-1 notes, Class A-2 notes and Class B notes issued by Trinity Rail Leasing 2020, a railcar leasing securitization. The issuer is a special purpose entity and wholly-owned subsidiary of Trinity Industries Leasing Company and has been structured to issue multiple series of notes.

The securitization is collateralized by a portfolio of 3,016 tank railcars with an aggregate adjusted value of $304.9 million (67% by value) and 2,711 non-tank railcars with an aggregate adjusted value of $149.9 million (33% by value). As of Aug. 31, approximately 76.9% of leases are on full service leases, 12.7% are on net leases and 10.4% are on per diem leases. The issuer will be responsible for covering maintenance costs for the railcars in the portfolio that are under full service lease contracts. The collateral pool is currently 100% utilized with no railcars off lease.

The Class A-1 notes will amortize in full over a seven year period, while the Class A-2 notes and Class B-1 notes will not amortize until the rapid amortization date in approximately seven years, on the payment date in November 2027.

Earlier this month, Kroll Bond Rating Agency assigned a preliminary rating to the Series 2020-1 Class A notes issued by Trinity Rail Leasing 2018 LLC, a railcar leasing securitization.