KBRA Assigns Preliminary Ratings to METAL 2017-1 Limited

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Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to four series of notes (the “Notes”) issued by METAL 2017-1 Limited.

Proceeds from the sale of the Notes will be used to acquire 26 aircraft that are initially leased to 12 lessees located in 10 countries with an initial total value of approximately $688.0 million.

This transaction represents the inaugural securitization for Aergo Capital Limited’s (“Aergo”, the “Servicer” or the “Company”). Aergo was founded in 1999 and over the following years established itself as a commercial aircraft trading and leasing company focusing on new, mid-life and end-of-life commercial aircraft. Since inception, Aergo has traded over 250 aircraft with over 50 airlines across all seven continents. Currently, the Company has 44 owned and committed aircraft valued at over $1.0 billion for 21 lessees located in 16 countries.

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 Aviation ABS Methodology published on October 26, 2016.

For complete details on the analysis, please see KBRA’s Pre-Sale Report, METAL 2017-1 Limited Pre-Sale Report, 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 Principal Amount
Series A Notes     A (sf)     $430,028,000
Series B Notes     BBB (sf)     $86,006,000
Series C-1 Notes     BB (sf)     $55,044,000
Series C-2 Notes     B (sf)     $34,402,000

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 entitled ABS: METAL 2017-1 Limited Representations and Warranties Disclosure.

Related Publications: (available at www.kbra.com)

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About Kroll Bond Rating Agency

KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).

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Business Wire: 20:24 GMT Thursday 12th October 2017

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