S&P rates Avation Capital notes B

S&P said it assigned a B long-term issue rating to proposed senior unsecured notes by Avation Capital SA under the company's medium-term notes program.

Avation plc fully guarantees the notes.

Avation announced that it would issue senior unsecured notes to fund the acquisition of two wide-body aircraft – one Airbus A330 and one Boeing B777, the agency explained.

Although Avation's ability to manage wide-body aircraft is untested, the added diversification to the company's fleet is positive, S&P said.

The company has already found clients for the two aircraft.

The stable outlook reflects an expectation that the company will maintain its profitability and leverage over the next 12 to 24 months while expanding its fleet, S&P said.

The B rating and 5 recovery rating on the senior unsecured notes that Avation guarantees reflect an expectation of 10% to 30% expected default recovery.

© 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.