KBRA Assigns Preliminary Ratings to START II Ltd. and START II USA LLC
Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to three series of notes (the Notes) issued by START II Ltd. and START II USA LLC (together,STARR II or the Issuers).
Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to three
series of notes (the “Notes”) issued by START II Ltd. and START II USA
LLC (together, “STARR II” or the “Issuers”).
GE Capital Aviation Services Limited will act as servicer for the
transaction (“GECAS”, the “Company” or the “Servicer”). This transaction
is the fifteenth third party portfolio securitization serviced by GECAS
and the fourth of those rated by KBRA. KBRA notes that an affiliate of
GECAS will be acquiring a small minority percentage of the equity in
STARR II.
Proceeds from the sale of the Notes will be used to acquire 20 aircraft
(the “Portfolio”) on lease to 13 lessees located in 11 countries. As of
March 1, 2019, the initial weighted average aircraft age of the
Portfolio is approximately 5.9 years, with a weighted average remaining
lease term of approximately 6.6 years. The Portfolio consists of 100%
narrowbody aircraft. The Portfolio has an initial value of approximately
$588.7 million, based on the average of the half-life base values
provided by three appraisers as of September 2018 and adjusted for
maintenance conditions as determined by Alton Aviation Consultants LLC
(“Alton”) as of March 2019. Comparatively, the Portfolio has an
aggregate maintenance-adjusted current market value of approximately
$597.5 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 here.
Notes | Preliminary Rating | Initial Note Amount | ||||||
Series A Notes | A (sf) | $382,000,000 | ||||||
Series B Notes | BBB (sf) | $69,000,000 | ||||||
Series C Notes | BB (sf) | $23,900,000 | ||||||
Related Publications: (available at www.kbra.com)
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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. KBRA is also 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/20190401005924/en/