Moody’s assigns Avolon loan Baa2

Moody’s Investors Service said it assigned a Baa2 rating to the new $500 million tranche 5 of the senior secured term loan B facility co-issued by Avolon TLB Borrower 1 (US) LLC and Avolon TLB Borrower 1 (Luxembourg) Sarl, both subsidiaries of Avolon Holdings Ltd.

“The Baa2 rating of Avolon’s new secured term loan B tranche 5 reflects Avolon’s Baa3 issuer rating as well as the term loan’s asset coverage, the priority of claim, and loan terms that reduce expected loss given default compared to the company’s unsecured obligations. The term loan is guaranteed by parent Avolon and subsidiary asset holding entities of the co-borrowers.

The other ratings of the Avolon group, including Avolon’s Baa3 backed issuer rating and the Baa3 senior unsecured rating of funding subsidiary Avolon Holdings Funding Ltd. were unaffected by this rating action, Moody’s said.

The outlook for the Avolon group is negative.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.