Moody’s Investors Service has upgraded four securities and affirmed four securities from the LEAF Receivables Funding 12, Series 2017-1 transaction. The transaction is a securitization of small-ticket equipment leases serviced by LEAF Commercial Capital.

Moody’s said approximately $212.3 million of asset-backed securities affected.

Complete rating actions are as follow:

Issuer: LEAF Receivables Funding 12, Series 2017-1

Class A-2 Notes, Affirmed Aaa (sf); previously on May 25, 2017 Definitive Rating Assigned Aaa (sf)

Class A-3 Notes, Affirmed Aaa (sf); previously on May 25, 2017 Definitive Rating Assigned Aaa (sf)

Class A-4 Notes, Affirmed Aaa (sf); previously on May 25, 2017 Definitive Rating Assigned Aaa (sf)

Class B Notes, Upgraded to Aaa (sf); previously on May 25, 2017 Definitive Rating Assigned Aa2 (sf)

Class C Notes, Upgraded to Aa1 (sf); previously on May 25, 2017 Definitive Rating Assigned A1 (sf)

Class D Notes, Upgraded to A1 (sf); previously on May 25, 2017 Definitive Rating Assigned A3 (sf)

Class E-1 Notes, Upgraded to Baa2 (sf); previously on May 25, 2017 Definitive Rating Assigned Baa3 (sf)

Class E-2 Notes, Affirmed Ba3 (sf); previously on May 25, 2017 Definitive Rating Assigned Ba3 (sf)

RATINGS RATIONALE

The actions were prompted mainly by a build-up of credit enhancement due to the sequential payment structure of the transaction and non-declining reserve account. The lifetime cumulative net loss (CNL) expectations for the transaction were unchanged at 3.0%.

Link to Moody’s analysis: https://www.moodys.com/research/Moodys-upgrades-LEAF-Receivables-Funding-12-LLC-Series-2017-1–PR_376579