The Kroll Bond Rating Agency (KBRA) has affirmed the A- rating of aircraft lessor and asset manager Falko Regional Aircraft's regional 2021-1 ABS series A loans.
Regional 2021-1 is Falko’s inaugural aviation ABS transaction that closed in April 2021, issuing $255 million of series A loans secured exclusively by regional aircraft. As of the March 2024 payment date, the portfolio comprised of 39 assets; 25 regional jet aircraft and 14 turboprop aircraft, on lease to 10 lessees located in 10 countries.
In April 2023, regional 2021-1 was upgraded from BBB+ to A-, with KBRA citing the “collateral performance and overall performance of the transaction” as the reason for the upgrade. This was against a backdrop of downgrades of over 50 aviation ABS transactions by KBRA owing to performance issues connected to Covid-19 and the Russia/Ukraine conflict.
KBRA affirms Falko's regional 2021-1 A- rating
