KBRA Assigns Preliminary Ratings to METAL 2017-1 Limited

NEW YORK–(BUSINESS WIRE)–Kroll Bond Rating Agency (KBRA) assigns preliminary ratings to four
series of notes (the “Notes”) issued by METAL
2017-1 Limited
.

Proceeds from the sale of the Notes will be used to acquire 26 aircraft
that are initially leased to 12 lessees located in 10 countries with an
initial total value of approximately $688.0 million.

This transaction represents the inaugural securitization for Aergo
Capital Limited’s (“Aergo”, the “Servicer” or the “Company”). Aergo was
founded in 1999 and over the following years established itself as a
commercial aircraft trading and leasing company focusing on new,
mid-life and end-of-life commercial aircraft. Since inception, Aergo has
traded over 250 aircraft with over 50 airlines across all seven
continents. Currently, the Company has 44 owned and committed aircraft
valued at over $1.0 billion for 21 lessees located in 16 countries.

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.

KBRA analyzed the transaction using the Aviation
ABS Methodology
published on October 26, 2016.

For complete details on the analysis, please see KBRA’s Pre-Sale Report, METAL
2017-1 Limited Pre-Sale Report
, which was published today at www.kbra.com.

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 Principal Amount
Series A Notes     A (sf)     $430,028,000
Series B Notes     BBB (sf)     $86,006,000
Series C-1 Notes     BB (sf)     $55,044,000
Series C-2 Notes     B (sf)     $34,402,000
 

Representations & Warranties Disclosure

All Nationally Recognized Statistical Rating Organizations are required,
pursuant to SEC 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 entitled ABS:
METAL 2017-1 Limited Representations and Warranties Disclosure
.

Related Publications: (available
at www.kbra.com)

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About Kroll Bond Rating Agency

KBRA is registered with the U.S. Securities and Exchange Commission as a
Nationally Recognized Statistical Rating Organization (NRSRO). In
addition, KBRA is recognized by the National Association of Insurance
Commissioners (NAIC) as a Credit Rating Provider (CRP).

Contacts

Kroll Bond Rating Agency
Analytical
Contacts:

Alan Greenblatt, 646-731-2496
Director
agreenblatt@kbra.com
or
Caitlin
Colvin, 646-731-2465
Senior Director
ccolvin@kbra.com
or
Andrew
Kabala, CFA, 646-731-2447
Director
akabala@kbra.com
or
Shi
Shen, 646-731-2480
Senior Analyst
sshen@kbra.com