Moody’s Assigns Ratings to MassMutual Asset Finance ABS

Moody’s Investors Service assigned provisional ratings of (P)P-1 (sf) to the Class A-1 Notes and (P)Aaa (sf) to the Class A-2, Class A-3, Class A-4 and Class A-5 Notes to be issued by MMAF Equipment Finance 2017-B (the issuer). The sponsor and servicer is MassMutual Asset Finance (MMAF; unrated), a wholly-owned subsidiary of Massachusetts Mutual Life Insurance (insurance financial strength rating Aa2, stable).

Moody’s said approximately $ 725 million in securities were rated.

The complete rating actions are as follows:

Issuer: MMAF Equipment Finance 2017-B

  • Class A-1 Notes, Assigned (P)P-1 (sf)
  • Class A-2 Notes, Assigned (P) Aaa (sf)
  • Class A-3 Notes, Assigned (P) Aaa (sf)
  • Class A-4 Notes, Assigned (P) Aaa (sf)
  • Class A-5 Notes, Assigned (P) Aaa (sf)

The ratings are based on an assessment of the quality and diversity of the obligors under the loans and leases, with the majority rated investment grade; the historical performance of MMAF’s portfolio, with very few instances of delinquency or default; credit enhancement including overcollateralization of 9.50% of the pool, a non-declining reserve account funded at closing and sized at 0.50% of the pool, and excess spread; and the legal and turbo structure of the transaction, as well as the servicing arrangements.

MMAF, as the sponsor and servicer, has engaged Portfolio Financial Servicing Company (unrated) as the sub-servicer and backup servicer, while Barings (unrated) is the performance guarantor of MMAF’s obligations as servicer.

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