Fitch rates CDB Leasing notes A+

Fitch Ratings said it assigned an expected rating of A+ to CDB Leasing Co., Ltd.'s senior unsecured dollar-denominated notes to be issued by CDBL Funding 1 under its $3 billion medium-term note program.

The proposed notes will be guaranteed by CDB Aviation Lease Finance Designated Activity Co. with a keepwell deed and deed of asset purchase undertaking provided by CDB Leasing, Fitch said.

CDBL Funding is an offshore special purpose vehicle, wholly owned by CDB Aviation, which is directly wholly owned by CDB Leasing, the agency explained.

The proposed notes will be listed on the Hong Kong Stock Exchange and the proceeds will be used for capital expenditure, including aircraft acquisitions and orders, refinancing existing debt and other general corporate purposes, Fitch said.

The expected rating on the proposed notes is underpinned by an expectation of an extremely high level of support from CDB Leasing and CDB Aviation, if needed, the agency said.

Any significant changes in the perceived willingness or ability of China's sovereign to support CDB and CDB Leasing in a full and timely manner could affect the rating on the notes, Fitch said.

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