KBRA Assigns Preliminary Ratings to Dext 2021-1

Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to four classes of notes issued by Dext ABS, 2021-1 (“Dext 2021-1”), an equipment ABS transaction.

Dext Capital, LLC (“Dext”), founded in 2018 and headquartered near Portland, OR, is an independent equipment finance company focused primarily on financing medium- and small-ticket medical equipment. The Dext ABS 2021-1, LLC transaction (“Dext 2021-1”) represents Dext’s second equipment ABS transaction.

As of October 29, 2021, the pool of equipment contracts backing Dext 2021-1 has a discounted pool balance of $158.83 million, based on a 6.25% discount rate. Dext ABS 2021-1, LLC will issue four classes of notes. Credit enhancement is comprised of overcollateralization, a cash reserve, subordination benefiting senior classes and excess spread. The overcollateralization is subject to a target equal to 8.25% of the initial pool balance and is non-amortizing after reaching this target level. The reserve account is funded at 1.80% of the initial pool balance and is non-amortizing.

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Related Publications

• Equipment Lease & Loan Global ABS Rating Methodology
• 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) is a full-service credit rating agency 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 pursuant to the Temporary Registration Regime. 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.

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