Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to three classes of loans issued by Falcon Aerospace Limited.

Proceeds from the sale of the loans will be used to purchase a fleet of 21 aircraft that are initially leased to 13 airlines located in 12 countries with an initial total value of approximately $496.1 million.

Dubai Aerospace Enterprise Ltd. (DAE or “the Company”) will act as the servicer for the transaction. DAE is the largest aircraft lessor in the Middle East. As of December 31, 2016, DAE’s fleet consisted of 111 owned and committed aircraft that were on lease to 28 lessees in 22 countries across six continents. The Company has 40 employees worldwide, with headquarters in Dubai and is majority owned by Investment Corporation of Dubai, the investment arm of the Government of Dubai.

The transaction benefits from sufficient credit enhancement and liquidity, as well as a dynamic structure that accelerates principal payments on the Loans in the event of weak performance.

KBRA analyzed the transaction using the Aviation ABS Methodology published on October 26, 2016.

For complete details on the analysis, please see KBRA’s Presale Report, Falcon Aerospace Limited, which was published today at www.kbra.com.

The preliminary ratings are based on information known to KBRA at the time of this publication. Information received subsequent to this release could result in the assignment of final ratings that differ from the preliminary ratings.

                 
Loans       Rating       Initial Principal Amount
Series A Loans       A (sf)       $315,000,000
Series B Loans       BBB (sf)       $65,000,000
Series C Loans       BB (sf)       $30,000,000
           

Related Publications: (available at www.kbra.com)

  • ABS: Aviation ABS Methodology
  • ABS: Falcon Aerospace Limited

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About Kroll Bond Rating Agency

KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).