Moodys: No negative rating impact on aircraft lease ABS sponsored by Aircastle from excess concentrations

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By admin October 26, 2015 21:54

Moodys: No negative rating impact on aircraft lease ABS sponsored by Aircastle from excess concentrations

Moody’s has announced that the sale of a Boeing B767-300ER aircraft, resulting in certain concentration limits being exceeded, would not, in and of itself and as of this time, result in the downgrade, the placement on review for possible downgrade or withdrawal of the ratings assigned to the certificates issued by ACS 2007-1 Pass Through Trust (ACS).

The Remarketing Agent, Aircastle Advisor (Ireland) Limited has executed the sale of a Boeing B767-300ER aircraft (MSN 25587) on behalf of ACS. As a result, the three largest lessees’ concentration exceeded the 37% limit to approximately 37.9% of the average portfolio’s initial base value. In addition, the emerging Europe, Africa, and Middle East concentration exceeded the 35% limit to approximately 45.5% of the average portfolio’s initial base value.

In assessing the potential impact on the ratings of the certificates, Moody’s focused on the following factors: the expected reduction to the balance of the ACS notes relative to the portfolio value, lessee concentrations, and the experience and expertise of Aircastle in leasing aircraft.

Moody’s has determined that the aircraft sale, in and of itself and at this time, will not result in the downgrade, the placement on review for possible downgrade or withdrawal of the ratings currently assigned to the certificates. However, Moody’s opinion addresses only the credit impact associated with the proposed aircraft sale, and Moody’s is not expressing any opinion as to whether the aircraft sale has, or could have, other non-credit related effects that may have a detrimental impact on the interests of certificate holders.

admin
By admin October 26, 2015 21:54