Verdant Commercial Capital, one of the top 10 independent equipment finance companies in the United States, received a credit rating upgrade from Moody’s Ratings on three classes of equipment asset-backed securities notes sponsored by Verdant Receivables 2023-1 LLC (VERD 2023-1).

Moody’s upgraded the ratings based on Verdant’s improving credit enhancements, strong collateral performance, and solid debt management. The agency also cited a robust reserve structure, growing credit support, and stable equipment market fundamentals.

The rating changes include:

Issuer: Verdant Receivables 2023-1 LLC

• Class B Asset Backed Notes: Upgraded to Aa1 (sf) from Aa2 (sf) (assigned Aug.16, 2023)
• Class C Asset Backed Notes: Upgraded to Aa3 (sf) from A1 (sf) (assigned Aug. 16, 2023)
• Class D Asset Backed Notes: Upgraded to Baa1 (sf) from Baa2 (sf) (assigned Aug. 16, 2023)

A rating committee conducted a comprehensive review of all credit ratings related to the transaction.

“Moody’s Ratings upgrades are a testament to Verdant’s continued commitment to financial excellence as well as our ability to deliver solid, long-term value for our investors,” Robert Moskovitz, chief financial officer at Verdant, said. “We are committed to extending this momentum while remaining dedicated to our vendor-based model, our partners, and our Verdant team.”

Headquartered in Cincinnati, Ohio, Verdant provides financing solutions for business-critical equipment needs, emphasizing agility, expertise, and growth.