NEW YORK, NY (April 6, 2018) – Kroll Bond Rating Agency (KBRA) places the ratings of Prop 2017-1 Limited, a turboprop aircraft ABS transaction, on Watch Downgrade.
The Series A Loans, Series B Loans and Series C Loans (collectively, the “Loans”) borrowed by Prop 2017-1 Limited (“Prop 2017-1”) represented the first securitization of aircraft managed by Elix Aviation Capital Limited (the “Servicer”).
On the closing date, proceeds from the sale of the Loans were used to purchase a fleet of 63 aircraft on lease to 17 airlines located in 12 countries. As of September 30, 2017, 62 aircraft had transferred legal title to Prop 2017-1. One aircraft was not delivered to the securitization and the proceeds from the aircraft were used to prepay the Loans.
Since the transaction closed, total cash flow available for debt has been less than anticipated relative to KBRA’s initial base case. As a result, KBRA has placed the ratings of the Loans on Watch Downgrade. KBRA will continue to monitor the transaction to determine what further rating actions are warranted.