NEW YORK–(BUSINESS WIRE)–Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to Trinity Rail Leasing 2020 LLC, Series 2020-2 Class A-1 Notes, Class A-2 Notes, and Class B Notes issued by Trinity Rail Leasing 2020 LLC (the “Issuer”), a railcar leasing securitization. The Issuer is a special purpose entity and wholly owned subsidiary of Trinity Industries Leasing Company (“Trinity”) and has been structured to issue multiple series of notes.
The securitization is collateralized by a portfolio of 3,016 tank railcars with an aggregate adjusted value of $304.9 million (67% by value) and 2,711 non-tank railcars with an aggregate adjusted value of $149.9 million (33% by value), (the “Portfolio Railcars”). As of August 31, 2020, approximately 76.9% of leases are on full service leases, 12.7% are on net leases and 10.4% are on per diem leases. The Issuer will be responsible for covering maintenance costs for the railcars in the portfolio that are under full service lease contracts. The collateral pool is currently 100% utilized with no railcars off lease.
The Class A-1 Notes will amortize in full over a seven year period, while the Class A-2 Notes and Class B-1 Notes will not amortize until the rapid amortization date (RAD) in approximately 7 years, on the payment date in November 2027.
- Trinity Rail Leasing 2018 LLC, Series 2020-1 Pre-Sale Report
- Trinity Rail Leasing 2018 LLC, Series 2018-1 New Issue Report
- General Global Rating Methodology for Asset-Backed Securities
- Global Structured Finance Counterparty Methodology
Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.
A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the U.S. Information Disclosure Form located here.
Information on the meaning of each rating category can be located here.
Further disclosures relating to this rating action are available in the U.S. Information Disclosure Form referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.
KBRA is a full-service credit rating agency registered as an NRSRO with the U.S. Securities and Exchange Commission. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and is a certified Credit Rating Agency (CRA) with the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe is registered with ESMA as a CRA.
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