NEW YORK--(EON: Enhanced Online News)--Kroll Bond Rating Agency (KBRA) has published a new report, “Aircraft Grading: KBRA’s Approach”.
KBRA’s aircraft grades are one of the key inputs into the ratings analysis of both recourse and non-recourse debt backed by aircraft collateral. These grades determine the depreciation curves, stress assumptions, and residual value used in KBRA’s EETC and ABS modeling.
KBRA’s approach to grading is dynamic as it reflects the trends in aircraft transactions in primary and secondary markets. Our long-term view of aircraft assets is principally driven by liquidity, residual value, technological obsolescence, and transition costs, among other factors. The grades make an important differentiation between an aircraft that is a good asset for an operator, based on payload-range capabilities, fuel efficiency, and maintenance costs, for example, versus one that is good for an investor or financier because of its value retention or liquidity.
KBRA utilizes industry resources, as well as its own database and research, in developing an independent, proprietary view of aircraft assets.
To view the report, please click here.
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).