Barings Equipment Finance Secures ABS Ratings for 2026 Transaction

Barings Equipment Finance LLC Secures Preliminary Ratings for 2026 Transaction

January 22, 2026 | New York

Kroll Bond Rating Agency (KBRA) has assigned preliminary ratings to five classes of notes in the asset-backed securities (ABS) transaction by Barings Equipment Finance LLC, named Barings 2026-A. This is the 23rd equipment ABS transaction managed by MassMutual Asset Finance LLC (MMAF), a subsidiary of Massachusetts Mutual Life Insurance Company. Established in 2003, MMAF has expertise in securitizing equipment lease and loan contracts, making it a key player in the finance industry.

The Barings 2026-A transaction features a diverse portfolio of equipment leases and loans, along with interests in related equipment and collateral. Credit enhancement mechanisms such as overcollateralization, excess spread, reserve accounts, and subordination are in place to support the senior notes. As of November 30, 2025, the aggregate securitization value (ASV), calculated at a 5.75% discount rate, stands at approximately $1.03 billion, covering 363 financed units and 103 obligors.

The average balance per unit is about $2.85 million, and the mean obligor exposure is roughly $10.05 million. Notably, the largest single obligor exposure is attributed to the U.S. Government, accounting for 14.19% of the ASV or $146.81 million, while the second-largest exposure is $61.31 million, representing 5.92% of the ASV.

For detailed insights into the ratings, sensitivities, and ESG factors influencing these credit assessments, refer to the KBRA website. As a Nationally Recognized Statistical Rating Organization (NRSRO), KBRA ensures regulatory compliance across jurisdictions, providing vital evaluations for the insurance and financial sectors.

For ongoing updates and detailed documentation, visit the official KBRA site.

Document ID: 1013159

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