Press Release|ABS
View PDF

KBRA Assigns Preliminary Ratings to MC Aviation 2026-1

29 Jun 2026   |   New York

Contacts

KBRA assigns preliminary ratings to three classes of notes issued by MC Aviation 2026-1 Limited and MC Aviation 2026-1 LLC (MCAV 2026-1), an aviation ABS transaction. MCAV 2026-1 represents the inaugural aviation ABS transaction serviced by AIP Capital Limited (AIP, the Servicer, or the Company). As of Q1 2026, the Company has 133 aircraft assets under management valued at approximately $7.5 billion, with approximately $3.2 billion in non-ABS debt facilities raised to-date.

Proceeds from the Series A Notes, Series B Notes, and Series C Notes (together, the Notes) will be used to acquire a portfolio of 18 assets (the Portfolio); consisting of 17 narrowbody aircraft (81.2% by value) and one widebody aircraft(18.8%) on lease to 12 lessees located in 10 jurisdictions. As of June 30, 2026 (the Cutoff Date), the weighted average age of the Portfolio is approximately 5.6 years, and the weighted average remaining term of the initial lease contracts is approximately 6.9 years. The Portfolio has an initial value of approximately $739.1 million based on the average of the half-life base values provided by three third-party appraisers as of March 31, 2026, which were adjusted for actual maintenance conditions and specifications by a third-party maintenance provider as of June 30, 2026.

To access ratings 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), one of the major credit rating agencies (CRA), is a full-service CRA 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 (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

Doc ID: 1015786