KBRA Assigns Preliminary Ratings to Triumph Rail LLC, Series 2021-2



Kroll Bond Rating Agency assigned preliminary ratings to Triumph Rail LLC, Green Secured Railcar Equipment Notes, Series 2021-2, Class A Notes and Class B Notes issued by Triumph Rail, a railcar leasing securitization.

The issuer is a special purpose entity and a wholly owned subsidiary of TRIP Rail Holdings LLC and has been structured to issue multiple series of notes, including Series 2021‑2. All the railcars in the portfolio and the related leases have been acquired by TRIP Rail Master Funding, which is the previous name of the issuer and was established in June 2011.

In January 2021, Trinity implemented a Green Financing Framework. The GFF is designed to allow TILC to issue various Green Financing Instruments, such as Green Bonds. TRP 2021-2 has been issued a pre-issuance review letter from an external verifier that this issuance is in alignment with the GFF. TRP 2021-2 is the second ABS transaction KBRA has rated, the first being TRP 2021-1 LLC, Series 2021-1, where the sponsor or an affiliated entity has implemented and tested a GFF and has committed to provide public annual reports which would include metrics relating to the environmental impact of this issuance.

The securitization is collateralized by a portfolio of 3,570 tank railcars with an aggregate FMV of $316.6 million (66.7% by value) and 3,218 non-tank railcars with an aggregate adjusted value of $158.2 million (33.3% by value). As of March 31, 2021, approximately 87.9% of the railcars are on full-service leases, 2.8% are per diem leases, 1.3% are on net leases and 7.9% are off lease. 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 92.1% utilized with 539 railcars off lease.


Like this story? Begin each business day with news you need to know! Click here to register now for our FREE Daily E-News Broadcast and start YOUR day informed!

Leave a comment

View Latest Digital Edition

Terry Mulreany
Subscriptions: 800 708 9373 x130
[email protected]
Susie Angelucci
Advertising: 484.459.3016
[email protected]

View Latest Digital Edition

Visit our sister website for news, information, exclusive articles,
deal tables and more on the asset-based lending, factoring,
and restructuring industries.
www.abfjournal.com