KBRA Assigns Preliminary Ratings to MAPS 2018-1 Limited

Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to three classes of notes (the “Notes”) issued by MAPS 2018-1 Limited.

This transaction represents the inaugural serviced securitization for Merx Aviation Servicing Limited (the “Servicer”) who is an indirect wholly owned subsidiary of Merx Aviation Finance, LLC (“Merx” or the “Company”).

Proceeds from the sale of the Notes will be used to acquire or refinance 25 aircraft on lease to 16 lessees located in 11 countries with initial value of approximately $610.5 million. In addition, proceeds of the Notes will also be used to refinance the AABS Limited Asset Backed Secured Term Loan (“AABS”) aircraft ABS transaction, which closed in January 2013. Of the 25 aircraft in this portfolio, 19 were also securitized in the AABS portfolio. Merx owned the equity in the AABS transactions and is now taking over the servicing of those 19 aircraft.

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 Global Aviation ABS Methodology published on November 28, 2017.

For complete details on the analysis, please see KBRA’s pre-sale report, MAPS 2018-1 Limited, which was published today at www.kbra.com.

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 Note Amount
Series A Notes A (sf) $415,000,000
Series B Notes BBB (sf) $55,000,000
Series C Notes BB (sf) $36,500,000

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 MAPS 2018-1 Limited Representations and Warranties Disclosure.