KBRA assigns preliminary ratings to the Class A Notes, Class B Notes, Class C Notes, and Class D Notes issued by HALO AirFinance 2026-1 Designated Activity Company and HALO AirFinance 2026-1 LLC (together, HALO 2026-1), an aviation loan ABS transaction.

HALO AirFinance 2026-1 represents the first aviation loan ABS securitization serviced by HALO AirFinance, LLC (HALO, the Company or the Servicer). The Company is a joint venture established by Tokyo Century and GA Telesis focused on direct lending to airlines, lessors, and investors. Affiliates of HALO will retain 100% of the equity of the subject transaction at closing.

Proceeds from the Notes will be used to acquire a portfolio of 11 loan facilities (the Facilities) comprised of 33 loans (the Collateral Obligations, and together with the Facilities, the Portfolio). As of July 2026, the Portfolio had an initial aggregate loan balance of approximately $427.2 million, an average Collateral Obligation balance of $12.9 million, and a weighted average remaining loan term of approximately 3.6 years. The Portfolio has a weighted average seasoning of approximately 13.9 months

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Methodologies

• ABS: Aviation ABS Global Rating Methodology
• ABS: General Global Rating Methodology for Asset Backed Securities
• Structured Finance: Global Structured Finance Counterparty Methodology

Disclosures

Further information on key credit considerations, sensitivity analyses that consider what factors can affect these credit ratings and how they could lead to an upgrade or a downgrade, and ESG factors (where they are a key driver behind the change to the credit rating or rating outlook) can be found in the full rating report referenced above.

A description of all substantially material sources that were used to prepare the credit rating and information on the methodology(ies) (inclusive of any material models and sensitivity analyses of the relevant key rating assumptions, as applicable) used in determining the credit rating is available in the Information Disclosure Form(s) located here.

Information on the meaning of each rating category can be located here.

Further disclosures relating to this rating action are available in the Information Disclosure Form(s) referenced above. Additional information regarding KBRA policies, methodologies, rating scales and disclosures are available at www.kbra.com.

About KBRA

Kroll Bond Rating Agency, LLC (KBRA), one of the major credit rating agencies (CRA), is a full-service CRA registered with the U.S. Securities and Exchange Commission as an NRSRO. Kroll Bond Rating Agency Europe Limited is registered as a CRA with the European Securities and Markets Authority. Kroll Bond Rating Agency UK Limited is registered as a CRA with the UK Financial Conduct Authority. In addition, KBRA is designated as a Designated Rating Organization (DRO) by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized as a Qualified Rating Agency by Taiwan’s Financial Supervisory Commission and is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider (CRP) in the U.S.

Doc ID: 1016327

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