KBRA Assigns Preliminary Ratings to Barings Equipment Finance LLC 2025-A

KBRA assigns preliminary ratings to five classes of notes issued by Barings Equipment Finance 2025-A (Barings 2025-A), an equipment ABS transaction.

Barings 2025-A represents the 21st equipment ABS sponsored by MassMutual Asset Finance LLC (MMAF or the Company). MMAF is a wholly-owned subsidiary of Massachusetts Mutual Life Insurance Company (MassMutual) and has an operating history dating back to 2003. The Barings 2025-A transaction is secured by a portfolio of equipment lease and loan contracts, together with interests in the related equipment and other collateral (together, the Financed Units). The Financed Units include various types of equipment including transportation equipment, federal energy equipment, energy management, computers, medical equipment, machinery & equipment, software, rail equipment, construction equipment, material handling equipment, furniture & fixtures and telecommunications. Barings 2025-A will issue five classes of notes (Notes). The Notes benefit from credit enhancement in the form of overcollateralization, excess spread, reserve account and subordination for senior classes.

The aggregate securitization value (ASV), which represents the discounted value of the cashflows, other than interest or implicit yield on floating rate contracts, from the Financed Units, is $885.82 million, as of November 30, 2024 (Cut-off Date) and based on the statistical discount rate of 7.50%. The ASV includes 312 Financed Units to 72 obligors. The average Financed Unit balance is approximately $2.84 million and the average obligor exposure is approximately $12.30 million. The maximum obligor exposure, which is to the U.S. Government, is $127.52 million or 14.40% of the ASV. KBRA has ratings on the U.S. Government which are available on KBRA.com. The next largest obligor exposure is $45.53 million, or 5.14% of the ASV.

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Methodologies

• ABS: Equipment Lease & Loan ABS Global Rating Methodology
• Structured Finance: Global Structured Finance Counterparty Methodology
• ESG Global Rating Methodology

Disclosures

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 Information Disclosure Form(s) 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 Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

Doc ID: 1007558

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