The downgrade is prompted by the correction of an analytical error and follows the completion of the periodic review. The rating is withdrawn for business reasons.

The downgrade to BB- is a result of Covid-19's severe impact on airlines' credit quality, aircraft values, early repayment of a large facility and the significant deterioration of the credit quality of another large facility.

Scope has taken no action on PR Aircraft S.A. - Compartment 1 (PR Aircraft) following a monitoring review. The notes issued by PR Aircraft continue to be rated BB under review developing.

The downgrade to BB under review developing is a result of Covid-19's severe impact on airlines' credit quality, aircraft values, and lease payments deferrals, which in turn reduce excess spread on the portfolio.

The downgrade to BBB+ is due to increased credit risk from the newly added loans and the Covid-19 crisis. The rating is under review for downgrade because the long-term impact from Covid-19 on airline traffic and aircraft values is still developing.

Scope has today placed the rating assigned to the notes issued by PR Aircraft S.A. - Compartment 1 under review for downgrade in regards to the impact of Covid-19 on airlines.

The affirmation reflects the performance of the portfolio in line with expectations and the average quality of the assets. The quality of all new asset aquisitions was in line with the investment criteria.

Scope Ratings has removed the review for downgrade on the A- rating of PR Aircraft Finance S.A. -Compartment 1. Scope has found no evidence that Boeing aircraft values have been significantly affected by the B737Max issues.

Scope announces that it will review the rating of PR Aircraft Finance S.A. - Compartment 1 as soon as it can assess the effect of manufacturing quality concerns on Boeing aircraft market values, which could result in a downgrade.

The affirmation reflects the good performance of the portfolio and the average quality of the assets in the portfolio. The quality of all new asset aquisitions was in line with the investment criteria and had a marginally positive impact on the rating.