AP NEWS

KBRA Assigns Preliminary Ratings to Kestrel Aircraft Funding Limited

December 3, 2018

NEW YORK--(BUSINESS WIRE)--Dec 3, 2018--Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to two series of notes (the “Notes”) issued by Kestrel Aircraft Funding Limited (“Kestrel 2018-1 Cayman”) and Kestrel Aircraft Funding USA, LLC (“Kestrel 2018-1 USA”, and, together with Kestrel 2018-1 Cayman, “Kestrel 2018-1”, or the “Issuers”). This is the third term securitization of aircraft managed by Dubai Aerospace Enterprise (DAE) Ltd. (“DAE”, the “Company” or “Servicer”) who will act as servicer for Kestrel 2018-1.

Proceeds from the sale of the Notes will be used, together with the equity proceeds to acquire 18 aircraft (the “Portfolio”) on lease to 15 lessees located in 13 countries. As of September 30, 2018, the initial weighted average aircraft age of the Portfolio is approximately 8.9 years with a weighted average remaining lease term of approximately 4.5 years. The Portfolio consists of 14 narrowbody aircraft (69.1% by value), 2 widebody aircraft (24.0% by value) and 2 turboprop aircraft (6.9% by value). As of November 30, 2018, the Portfolio has an initial value of approximately $477.1 million, based on the average of the half-life base values provided by three appraisers as of Q2 2018 which includes an adjustment by Alton Aviation Consultancy LLC (“Alton”) to reflect maintenance conditions as of November 2018. Comparatively, the Portfolio has an aggregate maintenance-adjusted current market value of approximately $470.1 million.

The transaction benefits from sufficient credit enhancement and liquidity, as well as a dynamic structure that accelerates principal payments on the Notes in the event of weak performance.

The preliminary ratings are based on information known to KBRA at the time of this publication. Information received subsequent to this release could result in the assignment of final ratings that differ from the preliminary ratings

To access ratings, reports and disclosures, click .

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About KBRA and KBRA Europe

KBRA is a full service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. 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, is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider, and is 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.

View source version on businesswire.com:https://www.businesswire.com/news/home/20181203005928/en/

CONTACT: Analytical:

Alan Greenblatt, Director

(646) 731-2496

agreenblatt@kbra.com

Caitlin Colvin, Senior Director

(646) 731-2465

ccolvin@kbra.com

Michael Dodge, Associate Director

(646) 731-3349

mdodge@kbra.com

Adam DeJong, Senior Analyst

(646) 731-2476

adejong@kbra.com

KEYWORD: UNITED STATES NORTH AMERICA NEW YORK

INDUSTRY KEYWORD: PROFESSIONAL SERVICES FINANCE

SOURCE: Kroll Bond Rating Agency

Copyright Business Wire 2018.

PUB: 12/03/2018 03:21 PM/DISC: 12/03/2018 03:21 PM

http://www.businesswire.com/news/home/20181203005928/en

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