KBRA Releases Research – Aviation ABS Repayment: The Role of Asset Sales

NEW YORK--(BUSINESS WIRE)--KBRA releases research examining aviation ABS repayment trends, and highlights recent aircraft sale activity, credit considerations, and broader market implications.

The aviation ABS market has experienced increased repayment activity as constrained aviation asset supply and strong demand for existing assets have supported sale proceeds above adjusted base values. In the current market, favorable asset sale realizations have accelerated deleveraging across both seasoned and more recent transactions, reducing the amount of notional debt outstanding ahead of scheduled maturity. While accelerated aviation ABS repayment can be a credit positive, the benefit depends on the proceeds generated, the amount of debt repaid, and the composition and performance of the collateral that remains in the transaction’s portfolio.

Click here to view the report.

Related Publications

• KBRA Comments on Aviation ABS Exposure as Spirit Airlines Ceases Operations
• Loan vs. Lease Aviation ABS: Same Plane, Different Seats

About KBRA

KBRA, one of the major credit rating agencies, is registered in the U.S., EU, and the UK. KBRA is recognized as a Qualified Rating Agency in Taiwan, and is also a Designated Rating Organization for structured finance ratings in Canada. As a full-service credit rating agency, investors can use KBRA ratings for regulatory capital purposes in multiple jurisdictions.

Doc ID: 1016755