Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to three note classes of Business Jet Securities 2021-1, LLC, Secured Notes, Series 2021-1. 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 subject to an operating lease and terms of the fixed rate notes as of February 23, 2021.
As of December 31, 2020, the aggregate asset value is approximately $780.2 million. The portfolio consists of 49 assets to 46 obligors. The average asset value is approximately $15.9 million and the weighted average remaining term is approximately 70 months. Operating leases account for approximately 91.2% of the initial portfolio by asset value, while 8.7% are finance leases and 0.1% are loans.
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.
Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency 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 pursuant to the Temporary Registration Regime. 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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20210223005978/en/
Usman Khan, Director (Lead Analyst)
+1 (646) 731-2488
Zara Shirazi, Senior Director
+1 (646) 731-3326
Shi Shen, CFA, Associate
+1 (646) 731-2480
Rosemary Kelley, Senior Managing Director (Rating Committee Chair)
+1 (646) 731-2337
Business Development Contact
Ted Burbage, Managing Director
+1 (646) 731-3325