Market Overview

KBRA Assigns Preliminary Ratings to Chesapeake Funding II LLC Series 2018-2

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Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to five
classes of notes (the "Notes") anticipated to be issued by Chesapeake
Funding II LLC (see preliminary ratings listed below).

The transaction represents the seventh term ABS issuance for Element
Fleet Management Corp. ("Element" or the "Company") through Chesapeake
Funding II LLC ("Chesapeake II"). There are six additional term series
of notes issued by Chesapeake II under the base indenture and all will
remain outstanding on the expected closing date of the Series 2018-2
Notes (the "2018-2 Notes"). The Series 2018-2 Notes issued by Chesapeake
II will be primarily supported by i) leases and related vehicles
originated by Element Fleet Corporation ("EFC") and allocated to one or
more special units of beneficial interest ("SUBIs") and ii) fleet loans
made by the Issuer to Chesapeake Finance Holdings II LLC. Payments to
Chesapeake II will come from i) collections from the leases and the
sales proceeds from the disposition of the leased vehicles, and ii)
collections from the fleet loans and the fleet loan property. The leases
and vehicles supporting the Series 2018-2 Notes are a shared pool of
leases allocated to SUBI-2 or DLPT Lease SUBI, which also support other
series of notes issued from Chesapeake II. As of May 31, 2018, the
collateral has an initial receivables balance of $6.17 billion.

Credit enhancement for the Notes consists of overcollateralization,
subordination and a reserve account funded on the closing date.

                         
    Class       Preliminary Rating       Initial Principal Balance    
    Class A-1 Notes       AAA (sf)       $277,580,000    
    Class A-2 Notes       AAA (sf)       $277,580,000    
    Class B Notes       AA (sf)       $17,000,000    
    Class C Notes       A (sf)       $13,920,000    
    Class D Notes       BBB (sf)       $13,920,000    
 

KBRA analyzed the transaction using the General Rating Methodology for
Asset-Backed Securities published on November 28, 2017.

For complete details on the analysis, please see KBRA's Pre-Sale Report,
which was published today at www.kbra.com.

The preliminary ratings are based on information known to KBRA at the
time of this publication. Information received subsequent to this
release could result in the assignment of final ratings that differ from
the preliminary ratings.

Representations & Warranties Disclosure

All Nationally Recognized Statistical Rating Organizations are required,
pursuant to SEC Rule 17g-7, to provide a description of a transaction's
representations, warranties and enforcement mechanisms that are
available to investors when issuing credit ratings. KBRA's disclosure
for this transaction can be found in the report available here.

Related Publications: (available at www.kbra.com)

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\About KBRA and KBRA Europe

KBRA is a full service credit rating agency registered with the U.S.
Securities and Exchange Commission as an NRSRO. In addition, KBRA is
recognized by the National Association of Insurance Commissioners as a
Credit Rating Provider and a certified Credit Rating Agency (CRA) by the
European Securities and Markets Authority (ESMA). Kroll Bond Rating
Agency Europe Limited is registered with ESMA as a CRA.

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