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KBRA Releases Research – Aviation ABS: Gaining Altitude

August 29, 2024 11:03 AM EDT

NEW YORK--(BUSINESS WIRE)-- KBRA releases research on the aviation sector's post-pandemic recovery and potential trajectory. Aviation was among the hardest hit industries during the pandemic, with global travel coming to a standstill in 2020. As a result, aviation asset-backed securities (ABS) faced considerable strain, enduring some of the most severe credit challenges across all of structured finance. Despite these headwinds, the industry has made a strong recovery since 2022, with utilization and lease rates rebounding toward pre-pandemic levels.

In light of this rebound and the time elapsed since the pandemic’s peak, KBRA examined key aviation ABS metrics, including the weighted average utilization rate, weighted average debt service coverage ratio (DSCR), and weighted average implied lease rate for the outstanding aviation ABS universe each month.

Click here to view the report.

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About KBRA

KBRA is a full-service credit rating agency registered in the U.S., the EU, and the UK, and is designated to provide structured finance ratings in Canada. KBRA’s ratings can be used by investors for regulatory capital purposes in multiple jurisdictions.

Doc ID: 1005715

Brian Ford, Head of Structured Finance Research
+1 646-731-2329
[email protected]

Brajean Ramos, Senior Analyst
+1 646-731-2417
[email protected]

Media Contact

Adam Tempkin, Director of Communications
+1 646-731-1347
[email protected]

Business Development Contact

Arielle Smelkinson, Senior Director
+1 646-731-2369
[email protected]

Source: Kroll Bond Rating Agency, LLC



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