Moody’s Investors Service upgraded equipment ABS notes sponsored by Amur Equipment Finance, specifically upgrading three classes of notes in Amur Equipment Finance Receivables IX LLC, Series 2021-1 (Amur 2021-1); four classes of notes in Amur Equipment Finance Receivables X LLC, Series 2022-1 (Amur 2022-1); and five classes of notes in Amur Equipment Finance Receivables XI LLC, Series 2022-2 (Amur 2022-2). The notes are backed by a pool of fixed-rate loans and leases secured primarily by trucking, transportation and construction equipment.
The complete rating actions are as follows:
Issuer: Amur Equipment Finance Receivables IX LLC, Series 2021-1
Issuer: Amur Equipment Finance Receivables X LLC, Series 2022-1
Issuer: Amur Equipment Finance Receivables XI LLC, Series 2022-2
The rating actions were primarily driven by the continuous buildup of credit enhancement, including overcollateralization and a non-declining reserve account. The notes feature sequential payment structures with the higher priority notes benefitting from the subordination of notes with lower payment priority. Other considerations include the deals’ seasoning and the high exposure to the trucking and transportation industry, which is generally cyclical.
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