The update to the aviation finance rating methodology discloses the analytical framework's implementation in Scope Ratings’ proprietary AF EL Model.
Scope Ratings is calling for comments on its updated Aviation Finance Rating Methodology. The update discloses that the analytical framework is implemented in Scope Ratings’ proprietary AF EL Model version 1.0.
In addition, all references to weighted average life (WAL) have been changed to risk horizon (RH). This editorial change clarifies that the RH takes into account all cash flows, not just principal and interest.
The proposed updates entail no change to the analytical framework and consequently have no impact on outstanding public ratings.
Scope invites market participants to provide comments on this proposed methodology update by 21 June 2019. Scope will publish the content of any written response in accordance with regulatory requirements, unless the respondent has specifically requested confidentiality.