Clarus Capital announced that Kroll Bond Rating Agency (KBRA) has upgraded four classes of notes issued by Clarus Capital Funding 2024-1 LLC, reflecting the transaction’s continued performance, increased credit enhancement and ongoing deleveraging. 

KBRA upgraded the following classes:

Class B Notes: upgraded to AA+ (sf) from AA (sf)
Class C Notes: upgraded to A+ (sf) from A (sf)
Class D Notes: upgraded to BBB+ (sf) from BBB (sf)
Class E Notes: upgraded to BB+ (sf) from BB (sf) 

KBRA also affirmed the Class A-2 Notes at AAA (sf). 

The asset backed securitization is supported by a diversified portfolio of mid- and large-ticket equipment loans and leases originated by Clarus spanning multiple sectors, including manufacturing, aerospace, construction and technology. 

KBRA cited the continued build-up of hard credit enhancement across the capital structure, the maintenance of the transaction’s overcollateralization target, the reserve account and increased subordination as the transaction has deleveraged. The Agency also noted that existing credit enhancement is sufficient to support the upgraded ratings. 

“KBRA’s upgrades are a reflection of the continued performance and deleveraging of the 2024-1 transaction,” said Mike Eisenstein, Chief Financial Officer of Clarus Capital. “We believe the rating actions validate our focus on sound credit underwriting, structural protections, and careful portfolio construction. We appreciate KBRA’s thorough review of the transaction.”