S&P gives BOC Aviation notes A-

S&P said it assigned its A- long-term issue rating to a proposed issuance of senior unsecured notes by BOC Aviation Ltd. under the company's $10 billion global medium-term notes program.

Proceeds will be used for refinancing, capital spending and general corporate purposes.

The agency said the rating on BOC Aviation reflects the company's good cash flow stability from long leases, sound competitive position and support from its majority shareholder Bank of China Ltd.

Tempering these strengths are BOC Aviation's leverage tolerance, high capital spending over the next three years and exposure to the industry's cyclical demand and aircraft lease rates, the agency said.

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