Moody's upgrades FLY Leasing, loan

Moody's Investors Service said it upgraded FLY Leasing Ltd.'s corporate family rating to B1 from B2 and upgraded the rating of the company's secured term loan due 2019 issued by its subsidiary FLY Funding II Sarl to Ba3 from B1.

The outlook is stable.

Moody's said the upgrade reflects FLY's improved leverage and profitability. FLY steadily repaid debt since 2011, when leverage peaked after the company acquired a highly leveraged aircraft portfolio. The company also raised $170 million of equity in July 2013, further improving leverage measures. Pro-forma for the $105 million term loan add-on closed on Nov. 21 and BOS debt restructuring announced on Nov. 15, the firm's Debt to Equity measured 2.9x, compared to 5.0x at March 31, 2012. FLY has also reduced its cost of funding, aiding profitability.

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