NEW YORK–(COMMERCIAL THREAD) – Kroll Bond Rating Agency (KBRA) publishes its equipment loan and rental indices for July 2021.
The equipment lending and lease securitization sector continued to post positive credit performance during the June collection period. KBRA’s Credit and Equipment Lending Index posted a negative annualized net loss rate for the second time this year as recoveries exceeded write-offs during the month. The negative value reflects the impact of recoveries in the form of proceeds from equipment liquidation as well as a significant level of “resolved defaults”. Corrected defaults represent contracts that have become technical defaults in previous periods, but then defaulted in subsequent periods when adjustment payments are made to update the contract. Meanwhile, the percentage of payments over 60 days past due rose 10 basis points month over month to 0.70%, but remained near post-crisis lows.
Click here to view the report.
KBRA is a full service credit rating agency registered in the US, EU and UK, and is designated to provide structured finance ratings in Canada. KBRA ratings may be used by investors for regulatory capital purposes in several jurisdictions.