Kroll Bond Rating Agency (KBRA) has assigned an issuer rating of BB- and a senior unsecured debt rating of B+ to Intrepid Aviation Group Holdings, LLC (“Intrepid” or “the Company”), an aircraft leasing company headquartered in Stamford, Connecticut. The Outlook on the ratings is Stable.

The BB- issuer rating of Intrepid considers the value of the Company’s experienced executive team, demonstrated resilience, young fleet, strong contracted cash flows, no placement risks in the near future, significant shareholder equity contribution to-date and a positive outlook for the aircraft leasing industry. These strengths are constrained by the short operating history, high asset and customer concentration risks, limited liquidity with reliance on bank financing, high asset encumbrance, relatively high leverage, as well as exposure to the highly competitive and cyclical global passenger airline industry. The ratings and outlook also take into consideration the Company’s recent amendment to its shareholder agreement to align the shareholders’ incentives and its plan to raise additional equity in the medium term. Given the high level of asset encumbrance, the senior unsecured debt rating of B+ reflects a one-notch reduction from the issuer rating.

The ratings are based on KBRA’s Global Finance Company Rating Methodology, published on November 28, 2017. KBRA’s rating report for Intrepid is available here.

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KBRA is a full service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and 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.