Moody’s Investors Service assigned provisional ratings of (P) Aaa (sf) to the Class A-1, (P) Aaa (sf) to the Class A-2, (P) Aa2 (sf) to the Class B, (P) A2 (sf) to the Class C, and (P) Baa2 (sf) to the Class D Series 2016-1 Asset Backed Notes issued by Chesapeake Funding II, a bankruptcy-remote special purpose entity wholly owned by Element Financial.

Element is a public company traded on the Toronto Stock Exchange with approximately C$25.2 billion in assets as of 31 December 2015. It is one of North America’s leading equipment finance companies, which covers commercial/vendor, aviation, railcar and fleet lease.

The issuer was formed by Element to establish a new securitization program following Element’s acquisition of the U.S. fleet leasing and management services business of GE Capital (A1), which closed on 31 August 2015. Series 2016-1 will be the issuer’s first term note issuance rated by Moody’s.

The complete rating action is as follows:

Issuer: Chesapeake Funding II LLC, Series 2016-1

Series 2016-1 Fixed Rate Asset Backed Notes, Class A-1, Assigned (P)Aaa (sf)

Series 2016-1 Floating Rate Asset Backed Notes, Class A-2, Assigned (P)Aaa (sf)

Series 2016-1 Fixed Rate Asset Backed Notes, Class B, Assigned (P)Aa2 (sf)

Series 2016-1 Fixed Rate Asset Backed Notes, Class C, Assigned (P)A2 (sf)

Series 2016-1 Fixed Rate Asset Backed Notes, Class D, Assigned (P)Baa2 (sf)

The underlying collateral backing the notes will primarily consist of a special unit of beneficial interest in a revolving pool of fleet leases and the related vehicles serviced by Element Vehicle Management Services Group, wholly-owned subsidiary of Element.

The ratings are based on Moody’s assessment of the credit quality of the lessees, the value of the collateral, and the legal and structural aspects of the transaction. Moody’s rates approximately 70% of the top 200 lessees by lease balance. Moody’s rates roughly 46% of the top 200 lessees by lease balance investment grade. The weighted average rating of the rated lessees is Ba1. The Series 2016-1 notes have hard credit enhancement of 12.51% for the Class A notes, 9.17% for the Class B notes, 6.58% for the Class C notes and 4.11% for the Class D notes (each as a percentage of the initial principal amount of the Series 2016-1 notes). Series 2016-1 will have an 11 month revolving period.