Press Release|ABS

KBRA Assigns a Preliminary Rating to Horizon Aircraft Finance IV Limited

3 Sep 2024   |   New York

Contacts

KBRA assigns a preliminary rating to one series of notes issued by Horizon Aircraft Finance IV Limited and Horizon Aircraft Finance IV LLC (together, Horizon 2024-1), an aviation ABS transaction. Horizon 2024-1 represents the fifth aviation ABS transaction serviced by BBAM Aviation Services Limited and BBAM US LP (together, BBAM or the Company). BBAM is a manager of commercial aircraft and has provided fleet and financing solutions to more than 100 airlines in over 50 countries. As of March 31, 2024, the Company had approximately $18.3 billion in assets under management, including its managed portfolio of over 530 aircraft.

Proceeds from the Series A Notes (the Notes) will be used to acquire a portfolio of 17 assets (the Portfolio); consisting of 17 narrowbody aircraft on lease to 10 lessees located in eight jurisdictions. As of July 31, 2024 (the Cutoff Date), the weighted average age of the Portfolio is approximately 1.9 years, and the weighted average remaining term of the initial lease contracts is approximately 9.2 years. The Portfolio has an initial value of approximately $838.5 million.

To access rating and relevant documents, click here.

Click here to view the report.

Methodologies

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: 1005757

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