Scope Ratings has removed the review for downgrade on the A- rating of PR Aircraft Finance S.A. -Compartment 1. Scope has found no evidence that Boeing aircraft values have been significantly affected by the B737Max issues.

Rating action

Scope Ratings has today lifted its review on downgrade on the A- (A minus) rating on the notes issued by PR Aircraft Finance S.A. – Compartment 1 (PR Aircraft). Scope has found no evidence that Boeing aircraft values have been affected by the B737Max issues, after monitoring aircraft values since the review for downgrade was assigned.

With this rating action PR Aircraft’s rating is no longer under review for downgrade.

Scope reviewed the rating on the notes issued by PR Aircraft following market developments that justified placing the rating under review for downgrade on 2 May 2019 (see previous Rating Action Release notice on www.scoperatings.com). Scope has found no evidence of any significant market value correction. Aircraft market values and the number of transactions completed in the market since May 2019 have not reflected value corrections that can be related to the incidents affecting
the B737Max.

The review for downgrade coincided with the New York Times questioning Boeing’s safety and quality controls which would affect Boeing’s 787 plant in North Charleston, in a journalistic investigation that reviewed internal emails, corporate documents and federal records related to Boeing manufacturing plants after the two B737Max aircraft crashes in 2018 and 2019.

All loans in the portfolio are directly or indirectly secured by one or more aircraft and, in certain instances, direct recourse to a lessor.

Scope continuously monitors PR Aircraft Finance S.A. – Compartment 1.