KBRA assigns preliminary ratings to three classes of notes issued by Crockett Partners Equipment Company IIA LLC (the Issuer), an equipment rental ABS transaction.

The transaction represents Crockett Partners Fund I, LP’s (Sponsor or Fund) and EquipmentShare.com Inc.’s (EQS or Equipment Manager), first equipment rental ABS transaction. The notes are supported by an amortizing pool of collateral, which as of the May 31, 2024 statistical cutoff date, has 8,975 equipment and an aggregate net book value (ANBV) of approximately $498.0 million. The portfolio is primarily comprised of nine different equipment types from ten different manufacturers comprising approximately 99% and 88%, respectively, of the collateral as a percentage of ANBV.

The Sponsor owns a special purpose vehicle, Crockett Partners Equipment Company II, LLC (Crockett), which sells a pool of equipment to the Issuer at closing. The equipment is rented to end users by EQS under an equipment management agreement. The Sponsor was formed in 2022 and is controlled by 1819 Partners, LLC, a Memphis-based private investment firm. EQS was founded in 2015 and is one of the largest equipment rental companies in the U.S., renting out its own equipment as well as managing rentals of equipment owned by third parties (OWN Program). As of March 31, 2024, EQS had 240 locations in 41 states and had $5.7 billion in original equipment cost (OEC) under management, including $2.0 billion under the OWN Program.

The Transaction is secured by the equipment owned by the Issuer. EQS manages the Issuer’s equipment and has also entered into a lease with the Issuer pursuant to which EQS pays the Issuer a lease payment equal to a substantial portion of rental payments generated by the equipment and receives from the Issuer maintenance and servicing platform fees. The lease payments are the initial source of funds for payments to the noteholders. If the lease payments generated by the equipment rentals are insufficient to make scheduled payments on the notes, including principal payments to maintain the required overcollateralization, or certain other events occur, a Liquidation Event will occur. This will require the equipment to be liquidated with the proceeds used to make the required payments to the noteholders.

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Methodologies

• ABS: General Global Rating Methodology for Asset Backed Securities
• Structured Finance: 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. 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.

Doc ID: 1005225

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