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Presale: HPEFS Equipment Trust 2021-2

The preliminary ratings assigned to HPEFS Equipment Trust 2021-2's (HPEFS 2021-2) asset-backed notes reflect our view of: The availability of 25.15%, 22.15%, 12.00%, and 5.50% initial hard credit support for the class A, B, C, and D notes, respectively. The hard credit support includes a cash reserve, funded at closing, equal to 1.00% of the initial discounted contract balance, which is subject to a floor of the same amount. The availability of approximately 4.10% annual excess spread (unstressed estimate). An overcollateralization target mechanism (a target level of 8.50% of the current discounted contract balance and a floor of 5.75% of the initial discounted contract balance) that minimizes the release of credit enhancement to the seller in our stressed cash flow

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