KBRA Assigns Preliminary Ratings to Signal Rail I LLC, Series 2021-1

Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to Signal Rail I LLC, Series 2021-1, Class A and Class B notes issued by Signal Rail I LLC (the “Issuer” or “SRL 2021-1”), a railcar securitization. The Issuer is a special purpose entity and a wholly owned subsidiary of Signal Rail Holdings LLC (“SRL”) and has been structured to issue multiple series of notes, including Series 2021-1. All of the railcars in the portfolio (“the Portfolio Railcars”) and related leases are being purchased from TILC or one of three wholly owned subsidiaries, which include Trinity Rail Leasing Warehouse Trust, Trinity Rail Leasing 2017 LLC and Trinity Rail Leasing 2020 LLC. The equity in this transaction will be held by SRL, which is a newly formed joined venture between investment funds advised by Wafra Inc. (“Wafra”) (90%) and Trinity Industries Leasing Company (“TILC”) (10%).

The securitization is collateralized by a portfolio of 2,196 freight railcars with an aggregate adjusted value of $168.9 million (51.2% by value) and 1,386 tank railcars with an aggregate FMV of $160.7 million (48.8% by value). As of June 30, 2021, approximately 75.0% of the railcars are on full service leases, 14.6% are per diem leases, and 10.4% are on net leases. There are no cars off-lease in this portfolio.

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Related Publications

• Global General Rating Methodology for Asset-Backed Securities
• 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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