No negative rating impact on aircraft lease ABS
Global rating agency Moody's announced today that the sale of one Airbus A320200, resulting in certain concentration limits being exceeded, in and of itself and at this time, will not result in a reduction, withdrawal, or placement under review for possible downgrade of the ratings currently assigned to any outstanding series of certificates issued by ACS 2006-1 Pass Through Trust (the "Issuer").
On December 31, 2012, the Remarketing Agent, Aircastle Advisor LLC ( Aircastle), sold one 1998 Airbus A320-200 (MSN 758), which was on lease to TAMLinhas Aereas SA.
As a result, four concentration limits were exceeded: Single Lessee concentration exceeded the 20% limit (approximately 20.1% of the average portfolio's base value),
Three Largest Lessees concentration exceeded the 42% limit ( approximately 43.8% of the average portfo- lio's base value), U.S. exposure exceeded the 25% limit (approximately 28.6% of the average portfolio's base value), and North American Developed exposure exceeded the 25% limit (approximately 28.6% of the average portfolio's base value).
In assessing the potential impact on the ratings of the certificates, Moody's focused on the following factors: the change to the credit profile and concentrations of the lessees in the pool in light of the current ratings on the certificates, which are lower than the original ratings; and the use of proceeds from the sale that will be use to pay-down 107% of the debt attributed to the sold aircraft. .
Moody's believed that the sale of the aircraft resulting in concentration limit excesses did not have an adverse effect on the credit quality of the certificates such that the Moody's ratings were impacted. Moody's did not express an opinion as to whether amendment could have other, non credit-related effects.