NEW YORK–(BUSINESS WIRE)–Kroll Bond Rating Agency (KBRA) assigns a BBB+ rating with a Stable Outlook to the senior unsecured notes to be issued by Avolon Holdings Funding Limited (Avolon Holdings Funding). Avolon Holdings Funding is a direct wholly owned subsidiary of Avolon Holdings Limited (Avolon or “the Company”), an aircraft leasing company headquartered in Dublin, Ireland. The notes will have an unsecured guarantee from Avolon. KBRA most recently affirmed Avolon’s issuer rating of BBB+ and upgraded the senior unsecured debt rating to BBB+ from BBB on July 12, 2019.
The notes will be jointly and severally guaranteed on a full and unconditional senior unsecured basis by Avolon, Avolon Aerospace Leasing Limited, Hong Kong Aviation Capital Limited, Park Aerospace Holdings Limited, CIT Aerospace LLC, CIT Group Finance (Ireland), CIT Aviation Finance III Ltd. and CIT Aerospace International (collectively, the “Guarantors”). The notes rank equally in right of payment with any existing and future senior indebtedness of the Issuer and Guarantors. The notes rank senior to any existing and future subordinated indebtedness of the Issuer and Guarantors and subordinated to all existing and future secured indebtedness of the Issuer and Guarantors. The notes rank structurally subordinated to all indebtedness and other liabilities of Avolon’s subsidiaries that does not guarantee the notes. Avolon intends to use the net proceeds from the sale of the notes for general corporate purposes, which could include the repayment of existing indebtedness.
KBRA’s most recent surveillance report for Avolon can be found here.
The ratings are based on KBRA’s Global Finance Company Rating Methodology, published November 28, 2017.
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