KBRA assigns preliminary ratings to four series of notes issued by APL Finance 2023-1 Designated Activity Company and APL Finance 2023-1 LLC (together, Ashland 2023-1), an aviation loan ABS transaction. Ashland 2023-1 represents the inaugural aviation loan ABS transaction that is sponsored and serviced by Ashland Place Finance LLC (APL or the Company). The Company is owned by Davidson Kempner Capital Management LP (DKCM), and, together with DKCM, is comprised of over 500 individuals operating out of seven offices with headquarters in New York City.

Proceeds from the Notes will be used to acquire a portfolio of 11 loan facilities (the Facilities) comprised of 26 loans (the Assets, and together with the Facilities, the Portfolio). The 11 Facilities are limited recourse facilities. As of October 31, 2023, the Portfolio has an initial aggregate loan balance of approximately $350.8 million, an average Asset balance of $13.5 million, and a weighted average remaining loan term of approximately 2.8 years. The Portfolio has a weighted average seasoning of 18 months.

The Facilities are secured by 19 narrowbody aircraft (56.4%), three widebody aircraft (40.0%) and four narrowbody host aircraft engines (3.6%) (the Underlying Collateral) on lease to 12 lessees located in 11 jurisdictions. As of October 31, 2023, the Underlying Collateral has a weighted average age of 10.0 years (excluding the engines) and an initial appraised value of approximately $612.2 million based on the average of half-life base values provided by three third-party appraisers as of the second quarter of 2023.

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Related Publications

• Global Aviation ABS Rating Methodology
• General Global Rating Methodology
• Global Structured Finance Counterparty Methodology
• ESG Global Rating 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.

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