No neg­a­tive rat­ing im­pact on air­craft lease ABS

The Pak Banker - - COMPANIES/BOSS -

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.

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