KBRA assigns preliminary ratings to four classes of notes issued by VFI ABS 2025-1, LLC (VFI 2025-1), an equipment ABS transaction.

Varilease Finance, Inc. (VFI, the Company, the Originator or the Servicer), founded in 2001 and headquartered in Salt Lake City, Utah, is an independent equipment finance company focused on leasing industrial and commercial equipment to upper- and middle-market businesses. VFI 2025-1 represents the Company’s third equipment ABS transaction. As of June 30, 2025 VFI’s servicing portfolio in the U.S. is approximately $634 million. VFI has grown its managed portfolio while employing a consistent underwriting policy.

As of the August 1, 2025 statistical cut-off date, the pool of equipment contracts backing VFI 2025-1 (Statistical Pool) has an aggregate discounted receivable balance of $202.09 million, 98 receivables, and 81 obligors. VFI 2025-1 will issue four classes of notes (Notes). Credit enhancement is comprised of overcollateralization (O/C), a cash reserve, a capitalized interest account, subordination benefiting senior classes and excess spread. The O/C is subject to a target equal to 4.70% of the current pool balance and a floor equal to 1.25% of the initial pool balance. The reserve account is funded at 1.50% of the initial note balance (1.46% of the pool balance as of the initial cut-off date) and is non-amortizing.

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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: 1010763

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