S&P takes rating action on ABS deals | News | Airfinance Journal

S&P takes rating action on ABS deals

Export:

S&P Global Ratings has lowered its rating for 54 aircraft and engine asset-backed securitisations (ABSs), while affirming the status of six more.

S&P said the rating actions primarily reflected the notes' “insufficient credit enhancement” at their respective current trading levels, based on its assumptions.

The agency further said that the transactions' credit quality had declined due to health and safety fears related to Covid-19.

Other considerations in the rating actions include a “high” overall loan to value (LTV) ratio, the “declining” credit quality of the lessees and falling lease collection and debt servicing coverage ratios.

In addition, S+P highlighted what it considered the higher exposure to widebody or older aircraft relative to peers, which are subject to comparatively higher stresses in its rating runs due to the current perceived challenges for such aircraft.

It noted that a “significant portion” of collateral either off lease now or coming off lease in the next six to 12 months.
S&P also said it was informed by feedback from lessors regarding plans for off-lease aircraft.

For notes that are now rated CCC, the agency considered the fact that their LTVs were close to or in excess of 100% and continued deferral of interest on the subordinated note was likely to increase the LTV further.

“We believe that the notes may require favourable business, financial, or economic conditions to resume interest payments under the current environment,” it stated.

There were also structural considerations, including the availability of a third-party provided liquidity facility for most transactions, which S&P said typically cover nine months' interest on the senior notes.

At the time of review, none of the transactions had drawn upon this facility. The transactions also have a maintenance reserve account to cover for any refurbishments in the coming months, it observed.

Castlelake Aircraft Securitization Trust 2016-1 A loans have been kept at A, while the B loans have been maintained at BBB and the C loans at BB.

Castlelake Aircraft Structured Trust 2017-1 A loans were lowered from A to BBB, the B loans from BBB to BB and the C loans from BB to B.

DCAL Aviation Finance A-1 has been lowered from BBB+ to BB-, the B-1 component from BB+ to B- and the C-1 from B+ to CCC.

Falcon Aerospace A tranche has been lowered from A to A-, the B tranche from BBB to BBB- and the C tranche has been maintained at BB.

FAN Engine Securitization A tranche has been lowered from BB+ to B+.

Harbour Aircraft Investments A loans have been lowered from BBB+ to BB+, the B loans from BB+ to BB- and the C loans from B- to CCC.

JOL Air 2019-1 A tranche has been lowered from A to BBB+ and the B loans from BBB to BB+.

KDAC Aviation Finance A tranche has been lowered from A to BBB, B tranche from BBB to BB, and the C tranche from BB- to B+.

Labrador Aviation Finance A tranche has been lowered from A to BBB+ and the B tranche from BBB- to BB+.

MAPS 2018-1 A tranche has been lowered from A to BBB+, the B tranche from BBB to BB+ and the C tranche from BB to B+.

MAPS 2019-1 tranche A has been lowered from A to BBB+, the B tranche from BBB to BB+ and the C tranche from BB to B+.

Merlin Aviation Holdings tranche A has been lowered from A- to BBB+, tranche B from BBB- to BB+ and the C tranche was affirmed at B+.

Raptor Aircraft Finance tranche A has been lowered from A- to BB+, the B tranche from BBB- to B+ and the C tranche from B+ to CCC

Shenton Aircraft Investment I 2015-1A was lowered from A to BBB+ and 2015-1B from BBB to BB+.
S-JETS 2017-1 A tranche was lowered from A to BBB, tranche B from BBB to BB and the C tranche from BB to B.

Other rating actions include lowering START’s A tranche from A to BBB+, the B tranche from BBB to BB+ and C tranche from BB to B+.
WAVE 2017-1 tranche A has been lowered from A to BBB, tranche B from BBB to BB, and tranche C from BB to B.
WAVE 2019-1 tranche A has been lowered from A to BBB+, tranche B from BBB to BB+ and the C tranche from BB to B.

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Phasellus ultrices urna eu consequat pulvinar. Suspendisse malesuada scelerisque iaculis. Cras ut facilisis arcu, posuere efficitur nisi. Fusce dictum tortor ac nibh rhoncus auctor. Praesent nunc felis, elementum vel orci quis, sodales tincidunt nisi. Vestibulum vestibulum vel erat quis feugiat. Nam nec pulvinar velit. Nunc feugiat felis lacus, non condimentum urna interdum vitae. In laoreet hendrerit commodo. Sed diam arcu, tincidunt quis augue ac, venenatis consequat dui. Quisque maximus venenatis erat, sed malesuada quam malesuada at. Aenean non quam a ex vulputate laoreet. Praesent eget neque convallis, rhoncus lorem a, venenatis metus. Maecenas sed malesuada purus.

Integer vel neque vel odio tempor laoreet. Praesent vel malesuada dolor, sit amet aliquam augue. Cras magna tortor, ullamcorper nec tristique ac, accumsan quis metus. Integer in magna sit amet leo vulputate vulputate. In pretium quam libero. Cras a pulvinar arcu, et rutrum orci. Proin euismod, justo quis scelerisque porttitor, purus odio dignissim ex, eu rhoncus lorem dolor sit amet mi. Pellentesque in massa vel mauris tempus euismod. Aenean efficitur vestibulum arcu ut elementum. Nam rhoncus ligula vel enim iaculis, quis luctus dui interdum. Nulla erat mi, lacinia eu orci ut, hendrerit fermentum lorem. Sed non gravida quam. Pellentesque habitant morbi tristique senectus et netus et malesuada fames ac turpis egestas. Nulla bibendum erat odio, pharetra lobortis eros blandit a.

In et ultrices ante. Vestibulum consequat libero quis quam tempor, efficitur accumsan lacus sollicitudin. Class aptent taciti sociosqu ad litora torquent per conubia nostra, per inceptos himenaeos. Phasellus ac est lacus. Quisque in interdum urna, non pulvinar sem. Duis tristique tortor vel urna commodo tincidunt sit amet ut sem. In sapien turpis, porta vitae neque in, varius egestas erat.

Interdum et malesuada fames ac ante ipsum primis in faucibus. Donec quis est vel ante facilisis efficitur. Pellentesque tincidunt odio eget lacinia vestibulum. Aliquam erat volutpat. Ut ac ipsum non nisi convallis eleifend et ornare lectus. Pellentesque diam nulla, dapibus quis convallis sed, posuere at urna. Proin tincidunt tincidunt nibh, id molestie est. Integer iaculis, leo sit amet pulvinar pellentesque, tellus elit vehicula ipsum, eget vulputate dui tortor vitae sem. Proin rhoncus venenatis tellus, vitae blandit ipsum malesuada sed. Morbi gravida magna hendrerit faucibus imperdiet. Ut bibendum a massa at efficitur. Donec egestas urna urna, sit amet mattis erat fringilla sit amet. Integer scelerisque enim sed odio semper molestie. Sed tincidunt malesuada nulla a fringilla. Nullam suscipit, justo nec facilisis efficitur, arcu mauris finibus lorem, ut egestas mi purus nec neque. Nunc nec euismod est, ac egestas neque.

Vivamus sit amet pretium quam, vitae fringilla dolor. In nec ligula arcu. Fusce a tortor leo. Sed blandit leo quis turpis sodales, eget tincidunt tortor ultrices. Fusce scelerisque eros quis quam vestibulum tempus. Praesent sodales aliquam nibh vel fermentum. Quisque vel diam sit amet sem convallis interdum. Proin ac velit molestie, malesuada tellus vitae, tempus est. Sed facilisis ut enim ac pretium. Mauris scelerisque fermentum risus, nec ultricies enim finibus vel. Aenean sem enim, dictum mollis aliquet nec, consequat nec nisl. Duis aliquam a lectus vitae ornare.


Regional Snapshot

Related Data

Transaction Snapshot
Air Company | Bond issue | 01-24 | $1.5bn
Financial Close:
11/02/2024
SPV:
Some Aviation Trust
Value:
$1,500.00m USD
Full Details