Kroll Bond Rating Agency (KBRA) looks back at aircraft ABS primary and secondary market activity, as well as several developing trends and challenges facing the sector.
In general, we believe that aircraft lease fundamentals are on solid footing as the market continues to benefit from increasing demand for air travel, particularly in emerging economies, as well as solid airline fundamentals. Aircraft ABS utilization rates have averaged close to 100% since 2013 and debt service coverage ratios (DSCR) have been trending upward as rising rates have supported higher lease rates in the aggregate. As long as the economy does not meaningfully slow over the next 12 months, aircraft ABS credit fundamentals should remain well contained in 2019.
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Related Publications: (available at www.kbra.com)
- 2019 Update: Regional Aircraft Market
- Aircraft ABS 2019 Outlook: We’ve Reached Our Cruising Altitude
- Alternate Channels: The Evolution of Aircraft Sales and Fleet Management
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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/20190118005541/en/
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