NEW YORK--(BUSINESS WIRE)--Fitch Ratings has affirmed RISE Limited as follows:
--Series A Loans at 'Asf'; Outlook Stable;
--Series B Loans at 'BBBsf'; Outlook Stable.
KEY RATING DRIVERS
The affirmation of the loans reflects the transaction's consistent performance to date which has been within Fitch's initial expectations. The Stable Outlook reflects Fitch's expectation that cash flow from the portfolio of aircraft will continue to be adequate to withstand stresses commensurate with the current ratings. Initial key rating drivers and the rating sensitivities are further described in Fitch's New Issue Report for this transaction dated Feb. 12, 2014.
Due to the correlation between the global economic conditions and the airline industry, the ratings may be impacted by the strength of the macro-environment over the remaining term of this transaction. Global economic conditions that are inconsistent with Fitch's expectations and stress parameters could lead to negative rating actions. Fitch, in the initial rating analysis, found the transaction to have minimal sensitivity to the timing or severity of assumed recessions.
Fitch found that greater default probability of the leases would have a material impact on the ratings. Additionally, Fitch found the timing or degree of technological advancement in the commercial aviation space, and the impacts these changes would have on lease rates and utilization, would have a moderate impact on the ratings. Scenarios testing the sensitivity of potential poor servicing and low utilization were found to have minimal impact on the ratings.
DUE DILIGENCE USAGE
No third party due diligence was provided or reviewed in relation to this rating action.
Additional information is available at www.fitchratings.com.
Counterparty Criteria for Structured Finance and Covered Bonds (pub. 14 May 2014)
Global Rating Criteria for Aircraft Operating Lease ABS (pub. 19 May 2015)
Global Structured Finance Rating Criteria (pub. 06 Jul 2015)
Rating Criteria for Structured Finance Servicers (pub. 23 Apr 2015)
Dodd-Frank Rating Information Disclosure Form