KBRA Assigns Preliminary Ratings to Aviation ABS Transaction

ALTDE 2026-1 Trust represents the second issuance serviced by Altavair, a $5.3 billion aircraft portfolio manager.

Apr. 17, 2026 at 4:56am

Got story updates? Submit your updates here. ›

An extreme close-up of intricately engineered aircraft engine parts and components, conveying the complex financial mechanics behind aviation asset-backed securities without using any text or symbols.The ALTDE 2026-1 aviation ABS transaction represents the growing sophistication of the aircraft leasing industry's financing options.NYC Today

KBRA has assigned preliminary ratings to ALTDE 2026-1 Trust, an aviation asset-backed securities (ABS) transaction. ALTDE 2026-1 is the second issuance serviced by Altavair L.P. and Altavair Limited, which together manage a portfolio of over 120 aircraft valued at approximately $5.3 billion. Proceeds from the Class A and Class B Notes will be used to acquire a portfolio of 23 aviation assets, including widebody and narrowbody aircraft, engines, and freighters, on lease to 16 lessees across 13 jurisdictions.

Why it matters

This transaction represents the continued growth and maturation of the aviation ABS market, which has seen increased activity as aircraft lessors seek alternative financing options beyond traditional bank lending. The preliminary ratings from KBRA provide an independent assessment of the credit quality and risk profile of the ALTDE 2026-1 portfolio, which could influence investor appetite and pricing for the Notes.

The details

The ALTDE 2026-1 portfolio consists of 23 aviation assets with an initial value of approximately $781.5 million, including 8 widebody aircraft, 8 narrowbody aircraft, 5 engines, and 2 freighter aircraft. As of the March 31, 2026 cutoff date, the weighted average age of the portfolio is 10.5 years (excluding engines) and the weighted average remaining lease term is 5.0 years. KKR Credit Advisors (US) LLC, which formed a joint venture with Altavair in 2018, will retain the equity position in ALTDE 2026-1 at closing.

  • ALTDE 2026-1 represents the second issuance serviced by Altavair since the company's founding in 2003.
  • The transaction's cutoff date for the 23-asset portfolio is March 31, 2026.

The players

Altavair L.P. and Altavair Limited

The aircraft leasing and asset management company that is servicing the ALTDE 2026-1 transaction. Altavair was founded in 2003 and has a managed portfolio of approximately $5.3 billion across more than 120 aircraft.

KKR Credit Advisors (US) LLC

The investment management firm that formed a joint venture with Altavair in 2018 and will retain the equity position in the ALTDE 2026-1 transaction.

Got photos? Submit your photos here. ›

What’s next

KBRA will continue to monitor the ALTDE 2026-1 transaction and may adjust the preliminary ratings as the portfolio and performance evolves.

The takeaway

The ALTDE 2026-1 transaction highlights the growing importance of the aviation ABS market as aircraft lessors seek alternative financing options. The preliminary ratings from KBRA provide an independent assessment of the credit quality of the portfolio, which could influence investor demand and pricing for the Notes.