Standard & Poor’s Global Ratings upgraded its ratings on several tranches of BJETS 2020-1 and BJETS 2021-1 ABS notes, which are part of Global Jet Capital’s securitization program.
In the case of BJETS-2020-1, the Class B notes were upgraded to A- from BBB and the Class C notes were upgraded from BB to BBB+, while the Class A notes maintained their A rating. Regarding BJETS 2021-1, the Class B notes were upgraded to BBB+ from BBB and the Class C notes were upgraded from BB to BBB-, while the Class A notes maintained their A rating. Per S&P’s existing risk criteria, A is the highest achievable rating for notes issued in business jet transactions.
The notes issued in the BJETS 2022-1 transaction maintained their existing ratings of A for Class A notes, BBB for Class B notes and BB for Class C notes.
According to S&P, the upgrades primarily reflect the significant increase in the respective notes’ credit enhancement due to faster-than-expected principal repayments, strong collateral collections and sustained, stable portfolio performance since closing.
Global Jet Capital originated and services the securitized loans and leases embedded in these ABS transactions.
“We are pleased to see the diversification and stability in our portfolio being recognized by S&P,” Vivek Kaushal, CEO of Global Jet Capital, said. “We are grateful to our investors and S&P for recognizing and rewarding this ongoing strong performance.”
Global Jet Capital has issued an aggregate of $3.6 billion of ABS notes collateralized by business aircraft loans and leases through its BJETS securitization program. The company has completed six transactions since its inaugural issuance in 2018. Global Capital awarded BJETS 2020-1 the “ABS Deal of The Year” award in its 2021 U.S. Securitization Awards.
