S&P upgrades ratings on four aircraft ABS transactions

S&P Global Ratings completed its review of 15 ratings from four aircraft asset backed securities (ABS) transactions. The agency upgraded 13 and two affirmations on these ratings.

“The upgrades primarily reflect the increase in the respective notes' credit enhancement due to principal repayments backed by strong collateral collections (base rent, maintenance reserves, end-of-lease payments, and sale of aircraft) and sustained stable portfolio performance leading to decreases in loan-to-value (LTV) ratios since our last review,” S&P said in a statement. 

The agency raised its ratings on the class A-F and A-R loans, as well as the class B1-F, B2-F, C-F, and F1-F notes from PK Air 1. The upgrades reflect the transaction's “sustained strong performance” since closing. In addition, the ratings upgrade reflects the transaction's compliance with coverage tests such as interest coverage and overcollateralisation, the loan's amortization, the strength of its servicer, Apollo PK Air Management, and their track record in the aviation leasing market. 

S&P also upgraded its ratings on the class B and C notes, as well as affirming its rating on the class A notes from AASET 2021-1 Trust. The MAPS 2018-1 transaction had its class A, B, and C notes ratings raised by S&P. The agency also raised its ratings on the class B and C notes for MAPS 2021-1 Trust, as well as affirming its rating on the class A notes. The upgrades for these transactions reflect the “sustained stable performance of the underlying aircraft pool”, as well as the paydown of the notes since the agency's previous review and the resulting decline in LTV ratios.