KBRA assigns preliminary ratings to four classes of notes issued by Avtech Equipment Receivables Funding 2026-1, LLC (Avtech 2026-1), an equipment ABS transaction.

Avtech Capital, LLC (Avtech, the Company, or the Servicer) was founded in 2002 and is a privately held equipment finance and leasing company. Avtech provides middle-market commercial equipment leases for a variety of equipment types across a diversified set of industries. As of December 31, 2025 Avtech’s servicing portfolio in the U.S. is approximately $262 million. Avtech 2026-1 represents the Company’s inaugural equipment ABS transaction.

As of the December 31, 2025 statistical cut-off date, the pool of equipment contracts backing Avtech 2026-1 (the Statistical Pool) has an aggregate discounted receivable balance of $115.92 million, 228 receivables, and 134 obligors. The pool balance is based on the projected cash flows for each contract discounted at each contract’s discount rate. The weighted average discount rate for the Statistical Pool is 15.63%. The Statistical Pool has an average lease discounted receivable balance of $508 thousand, with a weighted average number of original term of 40.2 months. The total collateral may increase by up to $30.00 million through the addition of equipment contracts during the three-month prefunding period.

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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: 1013142

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