KBRA Assigns Preliminary Ratings to Blackbird Capital II Aircraft Lease Limited

Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to the Series A Notes and Series B Notes issued by Blackbird Capital II Aircraft Lease Limited and Blackbird Capital II Aircraft Lease US LLC, an aviation ABS transaction. This transaction is serviced by Air Lease Corporation and ALC Aircraft Limited.

Proceeds from the Notes will be used to acquire 18 aircraft (the “Portfolio”) on lease, or expected to be on lease, to 12 lessees located in 11 jurisdictions, including one A320-200 (3.4% by value) that is off-lease. Unless noted otherwise, all statistics put forth assume the three non-delivered assets are delivered in September 2021 or December 2021, and includes the off-lease aircraft. As of May 31, 2021, the Portfolio had a weighted average remaining lease term of approximately 8.3 years, and a weighted average age of 2.9 years. The Portfolio has an initial value of approximately $989.3 million, based on the average of the half-life base values provided by three third-party appraisers as of March 2021, which were adjusted for maintenance conditions as of March 2021 by the third-party appraisers.

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Related Publications

• Global Aviation ABS Rating Methodology
• Global Structured Finance Counterparty Methodology

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA) is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority pursuant to the Temporary Registration Regime. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider.

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