KBRA Assigns Preliminary Ratings to volofin Finance (Ireland) Designated Activity Company and volofin Finance US LLC

NEW YORK--(BUSINESS WIRE)--KBRA assigns preliminary ratings to two classes of notes issued by volofin Finance (Ireland) Designated Activity Company and volofin Finance US LLC (together, vFin 2024-1), an aviation loan ABS transaction. vFin 2024-1 represents the inaugural aviation loan ABS securitization sponsored and managed by volofin Capital Management Ltd. (volofin or the Company). The volofin platform, founded in 2019, offers financing solutions for aviation investment firms, aircraft lessors, and airlines and is managed by eight senior management members with an average industry experience of 23 years. Since inception, the Company has originated or acquired interest in 36 loan facilities and four EETC tranches with an aggregate commitment amount of over $1.6 billion, financing 199 aircraft and 108 engines on lease to 72 credit counterparties in 37 countries. The Company’s headquarters is in London with additional offices in New York, South Carolina, and Dublin.

Proceeds from the Notes will be used to acquire a portfolio of 22 loan facilities (the Facilities) comprised of 107 loans (the Loans, and together with the Facilities, the Portfolio). The 22 Facilities include 21 limited recourse facilities (95.8% by loan balance) and one full recourse facility (4.2% by loan balance). As of September 2024, the Portfolio has an initial aggregate loan balance of approximately $533.9 million, an average loan balance of $4.9 million, and a weighted average Facility LTV of 64.5%. The Portfolio has a weighted average remaining loan term of approximately 4.6 years.

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Methodologies

• ABS: Aviation ABS Global Rating Methodology
• ABS: General Global Rating Methodology for Asset Backed Securities
• Structured Finance: 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. 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.

Doc ID: 1006886