Kroll Bond Rating Agency assigned preliminary ratings to two classes of notes issued by Labrador Aviation Finance. The series A notes with an initial principal amount of $603 million were rated A(sf) and the series B notes in the initial amount of $106 million were rated BBB(sf).

Proceeds from the sale of the notes will be used to purchase a fleet of 20 aircraft that are initially leased to 16 airlines located in 15 countries with an initial total value of approximately $928 million.

GE Capital Aviation Services will act as the servicer for the transaction. As of December 31, 2015, the company had assets valued at more than $46 billion. GECAS is a subsidiary of GE Capital and headquartered in Shannon, Ireland, with 25 offices, serving over 270 customers and 1,700 aircraft in 80 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.

The preliminary ratings are based on information known to KBRA. Subsequent information received could result in the assignment of final ratings that differ from the preliminary ratings.