NEW YORK–(BUSINESS WIRE)–Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to three note classes of Business Jet Securities 2020-1, LLC, Secured Notes, Series 2020-1. The Notes are newly issued asset-backed securities secured by payments due under the lease of, and loans secured by, business jet aircraft and the economic ownership of each business aircraft and helicopter subject to an operating lease and terms of the fixed rate notes as of October 15, 2020.
As of August 31, 2020, the aggregate asset value is approximately $636.4 million. The portfolio consists of 55 assets to 50 obligors. The average asset value is approximately $11.6 million and the weighted average remaining term is approximately 65 months. Operating leases account for approximately 63.1% of the initial portfolio by asset value, while 29.9% are loans and 7.0% are finance leases.
- Equipment Lease & Loan Global ABS Rating Methodology
- General Global Rating Methodology for Asset-Backed Securities
- Aviation ABS Global Rating Methodology
- Global Structured Finance Counterparty Methodology
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 U.S. Information Disclosure Form 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 U.S. Information Disclosure Form referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.
KBRA is a full-service credit rating agency registered as an NRSRO with the U.S. Securities and Exchange Commission. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and is a certified Credit Rating Agency (CRA) with the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe is registered with ESMA as a CRA.
Usman Khan, Director (Lead Analyst)
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Zara Shirazi, Senior Director
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Shi Shen, CFA, Associate
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Rosemary Kelley, Senior Managing Director (Rating Committee Chair)
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Ted Burbage, Managing Director
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