Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to three series of notes (the “Notes”) issued by KDAC Aviation Finance (Cayman) Limited.

Proceeds from the Notes will be used to acquire 36 aircraft (the “Portfolio”) on lease to 30 lessees located in 24 countries (including one aircraft subject to a letter of intent (“LOI”), for which no new lease has been signed). As of November 8, 2017, the initial weighted average aircraft age of the Portfolio is approximately 11.8 years with a weighted average remaining lease term of approximately 4.0 years. The composition of the Portfolio consists of 28 narrowbody aircraft (57.7% by value) and eight widebody aircraft (42.3% by value). The initial value of the Portfolio is approximately $868.8 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.

KBRA analyzed the transaction using the ABS: Global Aviation ABS Rating Methodology published on November 28, 2017.

For complete details on the analysis, please see KBRA’s pre-sale report, KDAC Aviation Finance (Cayman) Limited, which was published today at

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.

Notes Preliminary Rating Initial Principal Amount
Series A Notes A (sf) $565,000,000
Series B Notes BBB (sf) $95,500,000
Series C Notes BB- (sf) $62,000,000

Representations & Warranties Disclosure

All Nationally Recognized Statistical Rating Organizations are required, pursuant to SEC Rule 17g-7, to provide a description of a transaction’s representations, warranties and enforcement mechanisms that are available to investors when issuing credit ratings. KBRA’s disclosure for this transaction can be found in the report available ABS: KDAC Aviation Finance (Cayman) Limited.