NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to three note classes of Business Jet Securities, LLC, Secured Notes, Series 2018-1. 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 14, 2018.
As of November 30, 2017, the aggregate asset value is approximately $741.5 million. The portfolio is comprised of 67 assets to 60 obligors. The average asset value is approximately $10.9 million and the weighted average remaining term is approximately 63 months with further detail regarding contract terminations provided below. Approximately 63.3% of the portfolio is initially on operating leases, while 35.2% are loans and 1.5% are finance leases.
| Notes | Rating | Initial Note Amount | ||||||||||
| Class A | A (sf) | $496,810,000 | ||||||||||
| Class B | BBB (sf) | $74,150,000 | ||||||||||
| Class C | BB (sf) | $37,070,000 | ||||||||||
Representations & Warranties Disclosure
All Nationally Recognized Statistical Rating Organizations are required, pursuant to SEC Rule 17g-7, to provide a description of a transaction’s representations, warranties and enforcement mechanisms that are available to investors when issuing credit ratings. KBRA’s disclosure for this transaction can be found in the report available here.
Related Publications: (available at www.kbra.com)
- Business Jet Securities, LLC, Secured Notes, Series 2018-1 Pre-Sale Report
- Global Equipment Lease & Loan ABS Rating Methodology
- Global General Rating Methodology for Asset-Backed Securities
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KBRA is a full service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.
