KBRA assigns preliminary ratings to eight classes of notes issued by SCF Equipment Leasing 2025-2 LLC and SCF Equipment Leasing Canada 2025-2 Limited Partnership (collectively SCF 2025-2), an equipment ABS transaction.

SCF 2025-2 represents the 14th equipment ABS transaction sponsored by Stonebriar Commercial Finance LLC (SCF or the Company). Additionally, SCF services the Granite Park 2023-1 transaction, which is an equipment ABS backed by collateral originated and serviced by the Company. The SCF 2025-2 transaction is secured by: (1) a portfolio of equipment lease contracts and equipment loan contracts (together, the Contracts), together with interests in the related equipment and other collateral and (2) certain portfolio interest certificates evidencing 100% beneficial interest in a portfolio of leases of titled motor vehicles and the related equipment. The underlying Contracts are collateralized by essential use assets in a variety of industries such as marine, rail, medical, energy and manufacturing equipment. All of the Contracts were directly or indirectly originated by SCF or Stonebriar Commercial Finance Canada Inc. (SCF Canada). Founded in 2015, SCF is a privately owned commercial equipment finance company located in Plano, TX. The Company originates secured loans and leases in a variety of industries that are collateralized by essential use assets. As of June 30, 2025, SCF had funded approximately $16.0 billion of investments since inception and owned a portfolio of approximately $5.7 billion.

SCF 2025-2 will issue eight classes of notes, including a short-term money market tranche (Notes). The transaction features an acquisition account, which is funded on the closing date, which may be used, through the second payment date following the closing date (Transfer Period), so long as no event of default has occurred, to purchase 16 specifically identified contracts (the Additional Contracts), 14 of which currently collateralize the SCF 2022-1 transaction. Or, if any of the Additional Contracts prepays, replacement Additional Contracts may be purchased, subject to rating agency confirmation. Credit enhancement includes overcollateralization, excess spread, a reserve account, and subordination for senior classes. The initial aggregate discounted contract balance (the Initial ADCB) of the portfolio is approximately $972.56 million as of the Portfolio Calculation Date defined as the close of business on September 30, 2025 for the initial contracts, October 31, 2025 for one Additional Contract, and December 31, 2025 for all other Additional Contracts. The Initial ADCB is based on the projected equipment loan and lease cash flows, as well as the residual value of the related equipment, discounted at the respective contract’s implicit rate of return (IRR). The weighted average IRR is 9.92%. The portfolio is comprised of 44 contracts to 33 obligors. The average contract balance is approximately $22.10 million and the average exposure to an obligor is approximately $29.47 million. The maximum exposure to an obligor is approximately $98.15 million or approximately 10.09% of the Initial ADCB.

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Methodologies

• ABS: Equipment Lease & Loan ABS Global Rating Methodology
• 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), one of the major credit rating agencies (CRA), is a full-service CRA 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 (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

Doc ID: 1012155

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