Kroll Bond Rating Agency assigned preliminary ratings to six note classes of Axis Equipment Finance Receivables IV. The notes are newly issued asset-backed securities backed by a portfolio of equipment leases and loans.

This transaction is Axis Capital’s fourth securitization supported by small- and mid-ticket general equipment. The transaction features a payment waterfall, whereby all collections after expenses and interest payments will pay down principal, until the target credit enhancement (8.00%) as a percentage of the current collateral balance is reached.

As of September 30, 2016, the collateral consists of equipment loans and leases totaling approximately $180.5 million. The balance of the collateral is subject to certain eligibility criteria and will be funded during a 90-day period following the closing date and may not exceed $30.0 million. The discounted balance for the collateral as of the initial cutoff date is based on the projected equipment loan and lease cash flows discounted at a rate of 4.60%.