Kroll Bond Rating Agency Publishes an Update on the Aircraft Leasing Industry

NEW YORK--()--Kroll Bond Rating Agency (KBRA) anticipates sustained elevated competition within the aircraft leasing market in the near-term with more portfolio trades and new market entrants. In addition, further industry consolidation among small to mid-tier companies determined to capture market share and increase economies of scale is likely. With relative stability expected in regards to the performance of airlines given continued growing demand for air travel, reinforced by emerging economies and increased global connectivity, overall, lessors’ performance is projected to endure.

KBRA notes that risks remain in some pockets, as in the wide-body aircraft liquidity which could lead to impairments for some—particularly for lessors exposed to such large and expensive assets. Importantly, KBRA believes that a shift and rebalancing of the competitive landscape among the lessors is almost certain due to the emergence of keen interest from less traditional investors demonstrated by significant capital outlays for aircraft leasing platforms. To that end, while the sector as a whole remains well supported by fundamentals of global passenger travel, lessors with less ability to compete in the emerging landscape may not fare as well and new risk dynamics in the sector could surface.

To view the report, please click here.

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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).

Contacts

Analytical :
Kroll Bong Rating Agency
Marjan Riggi, 646-731-2354
Managing Director
mriggi@kbra.com
or
Leah Hallfors, 301-969-3242
Associate Director
lhallfors@kbra.com

Contacts

Analytical :
Kroll Bong Rating Agency
Marjan Riggi, 646-731-2354
Managing Director
mriggi@kbra.com
or
Leah Hallfors, 301-969-3242
Associate Director
lhallfors@kbra.com