Falko Announces Upgrade of Regional 2021-1 ABS by KBRA
London, 2 May 2023 – Kroll Bond Rating Agency (KBRA) has upgraded the rating of Falko’s Regional 2021-1 ABS Series A loans from BBB+ to A-.
In April 2021, Falko closed its inaugural aviation ABS transaction issuing $255m of Series A loans, the first ABS transaction completed since the COVID-19 pandemic which is exclusively secured by regional aircraft assets. At closing, the portfolio comprised of 39 assets, 25 regional jet aircraft and 14 turboprop aircraft on lease to nine lessees, increasing to 11 lessees across nine countries as of March 2023.
KBRA states that “the upgrade of the Series A loans is owed to the collateral performance and overall performance of the transaction. Since closing, the Series A loans have received all scheduled interest and principal payments”.
KBRA has downgraded securities from over 50 aviation ABS transactions owing to performance issues resulting from COVID-19 related industry disruption and the Russia/Ukraine conflict; however, no securities in Regional 2021-1 have been downgraded post issuance.
About Falko
Falko Regional Aircraft is the world’s largest asset manager and aircraft lessor focused solely on the regional aircraft leasing segment. Falko is one of the longest standing managers of regional aircraft globally. Falko’s strategy is focused on growing its portfolio of funds and aircraft under management and the continued development of products and services in support of its aircraft lease management activity.
Falko was formed in July 2011 through the purchase of BAE Systems Asset Management and its associated aircraft portfolio. In May 2022, Chorus Aviation Inc. (TSX: CHR) completed the acquisition of Falko and equity interests in aircraft managed by Falko. Headquartered in Halifax, Nova Scotia, Chorus is an integrated provider of regional aviation solutions, including asset management services.
For further information about Falko, visit www.falko.com or follow us on Twitter: Falko_RA
Contact
Falko Regional Aircraft Limited
Phone +44 (0) 1707 271777