Fitch rates Delos loan BB

Fitch Ratings said it assigned a BB expected rating to the proposed secured term loan facility issued by Delos Finance SARL (Delos).

Delos is a wholly owned, indirect subsidiary of International Lease Finance Corp.

The ratings were placed on Rating Watch positive, consistent with International Lease's long-term issuer default rating.

International Lease also has a senior unsecured debt rating of BB and a BBB- rating on its $3.9 billion senior secured notes and a B rating on its preferred stock.

Flying Fortress Inc. has a BB senior secured debt rating, ILFC E-Capital Trust I has a B rating on its preferred stock and ILFC E-Capital Trust II has a B rating on its preferred stock.

The debt is secured via a pledge of stock of Delos and related affiliates and is guaranteed by International Lease on a senior unsecured basis, Fitch said.

The rating on the new facility is not notched above International Lease's rating due to the lack of a perfected first-priority claim on aircraft provided to support repayment of the term loan, the agency said.

Furthermore, there is a risk of substantive consolidation of Delos and related affiliates in the event of an International Lease bankruptcy, Fitch added.

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