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TMCNet:  KBRA Assigns Preliminary Ratings to Willis Engine Structured Trust IV

[August 08, 2018]

KBRA Assigns Preliminary Ratings to Willis Engine Structured Trust IV

Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to two series of notes (the "Notes") issued by Willis Engine Structured Trust IV ("WEST IV" or the "Issuer").

WEST IV represents Willis Lease Finance Corporation's ("Willis", the "Servicer" or the "Company") fifth securitization and the second rated by KBRA. KBRA notes that Willis will be retaining the equity in WEST IV and have also retained the equity in its previous securitizations.

Proceeds from the Notes will be used to acquire 56 assets, including 55 engines and one airframe (the "Portfolio"). 54 of the assets in the Portfolio are on lease to 28 lessees located in 18 countries, along with two engines currently not subject to a lease agreement. As of July 23, 2018, the Portfolio had a remaining lease term of approximately 1.6 years, with approximately 2.9% of the Portfolio initially not subject to a lease. The one airframe (737-800), representing 0.3% of the Portfolio, is leased to Scandinavian Airlines based in Sweden with an initial age of 17.6 years and a remaining lease term of 2.3 years. The Portfolio has an initial value of approximately $466.8 million.

The transaction benefits from sufficient credit enhancement and liquidity, as well as a dynamic structure that accelerates principal payments on the Notes in the event of weak performance.

The preliminary ratings are based on information known to KBRA at the time of this publication. Information received subsequent to this release could result in the assignment of final ratings that differ from the preliminary ratings.

Notes     Preliminary Rating     Initial Note Amount
Series A Notes     A (sf)     $326,759,000
Series B Notes     BBB (sf)     $46,680,000

Representations & Warranties Disclosure

All Nationally Recognized Statistical Rating Organizations are required, pursuant to SEC (News - Alert) Rule 17g-7, to provide a description of a transaction's representations, warranties and enforcement mechanisms that are available to investors when issuing credit ratings. KBRA's disclosure for this transaction can be found in the report available here.

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About KBRA and KBRA Europe

KBRA is a full service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. 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, is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider, and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.

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