KBRA Assigns Preliminary Ratings to Triumph Rail LLC, Series 2021-2

Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to Triumph Rail LLC, Green Secured Railcar Equipment Notes, Series 2021-2, Class A Notes and Class B Notes issued by Triumph Rail LLC (the “Issuer” or “TRP 2021-2”), a railcar leasing securitization. The Issuer is a special purpose entity and a wholly owned subsidiary of TRIP Rail Holdings LLC (“TRIP Rail”) and has been structured to issue multiple series of notes, including Series 2021‑2 (“TRP 2021-2”). All of the railcars in the portfolio (the “Portfolio Railcars”) and the related leases have been acquired by TRIP Rail Master Funding LLC (“TRMF”), which is the previous name of the Issuer and was established in June 2011.

In January 2021, Trinity implemented a Green Financing Framework (“GFF”). The GFF is designed to allow TILC to issue various Green Financing Instruments (“GFI”), such as “Green Bonds.” TRP 2021-2 has been issued a pre-issuance review letter from an external verifier that this issuance is in alignment with the GFF. TRP 2021-2 is the second ABS transaction KBRA has rated, the first being TRP 2021-1 LLC, Series 2021-1, where the sponsor or an affiliated entity has implemented and tested a GFF and has committed to provide public annual reports which would include metrics relating to the environmental impact of this issuance.

The securitization is collateralized by a portfolio of 3,570 tank railcars with an aggregate FMV of $316.6 million (66.7% by value) and 3,218 non-tank railcars with an aggregate adjusted value of $158.2 million (33.3% by value), (the “Portfolio Railcars”). As of March 31, 2021, approximately 87.9% of the railcars are on full service leases, 2.8% are per diem leases, 1.3% are on net leases and 7.9% are off lease. The Issuer will be responsible for covering maintenance costs for the railcars in the portfolio that are under full service lease contracts. The collateral pool is currently 92.1% utilized with 539 railcars off lease.

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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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