KBRA Assigns Preliminary Ratings to Stellar Jay Ireland DAC and Stellar Jay US, LLC

NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) assigns preliminary rating to three series of notes for Stellar Jay Ireland DAC and Stellar Jay US, LLC, an aviation ABS transaction. This transaction is sponsored by Avenue Capital Group and is serviced by Deucalion Aviation Limited.

Proceeds from the Notes will be used to acquire a portfolio of 21 aircraft (the “Portfolio”) on lease to 13 lessees located in 11 jurisdictions, including two off-lease aircraft (9.9% by value). As of September 30, 2021, the weighted average age of the Portfolio is approximately 14.9 years and the weighted average remaining term of the initial lease contracts is approximately 3.2 years (excluding off‑lease and delinquent aircraft). The Portfolio has an initial value of approximately $372.8 million, based on the average of the half‑life base values provided by three third‑party appraisers as of July 2021 or August 2021, which were adjusted for maintenance conditions as of September 2021.

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Related Publications

• Aviation ABS Global Rating Methodology
• Global Structured Finance Counterparty Methodology
• ESG Global Rating Methodology

Disclosures
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 Information Disclosure Form(s) 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 Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA
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.