KBRA assigns preliminary ratings to the Class A-F Notes, Class A Notes, Class B Notes, and Class C Notes issued by PK ALIFT Loan Funding 7 LP, an aviation ABS transaction (PKAIR 2025-2). PKAIR 2025-2 represents the fifth aviation loan ABS securitization serviced by Apollo PK Air Management (CLO) LP (Apollo PK, or the Servicer), an affiliate of PK AirFinance (the Company). The PK AirFinance platform, which was founded in 1983, provides financing against aircraft and aircraft engines. The Company’s principal office is in New York with additional offices in London, Luxembourg, Singapore, Tokyo, and Toulouse. As of December 31, 2024, PK AirFinance has originated over $40 billion across 3,000 aviation loans since inception and has a managed portfolio of approximately $3.5 billion secured by approximately 275 aircraft and engines operated by 80 airlines in more than 45 countries. PK AirFinance will retain 100% of the equity of the subject transaction at closing.

Proceeds from the Notes will be used to acquire a portfolio of 35 loan facilities (the Facilities) comprised of 107 loans (the Collateral Obligations, and together with the Facilities, the Portfolio). The 35 Facilities are limited recourse (78.8% by loan balance) and full recourse (21.2% by loan balance). As of August 2025, the Portfolio has an initial aggregate loan balance of approximately $874.9 million, an average Collateral Obligation balance of $12.7 million, and a weighted average remaining loan term of approximately 5.4 years. The Portfolio has a weighted average seasoning of approximately 26.4 months.

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Methodologies

• ABS: General Global Rating Methodology for Asset Backed Securities
• ABS: Aviation ABS Global Rating Methodology
• Structured Finance: Global Structured Finance Counterparty Methodology
• ESG Global Rating Methodology

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.

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