Moody’s gives Macquarie AirFinance Baa3

Moody's Ratings said it assigned a Baa3 ratings to Macquarie AirFinance Holdings Ltd. and its new senior unsecured notes. The outlook is stable.

“Macquarie AirFinance's Baa3 issuer rating reflects the company's established performance track record in commercial aircraft leasing, its narrow-body fleet including aircraft it is acquiring from Kuwait-based Alafco Aviation Lease and Finance Co. KSCP (Alafco), its well-capitalized balance sheet with debt-to-equity leverage that Moody's expects will remain around 3x pro forma for debt the company will issue to finance fleet acquisitions, and its improving funding diversity aided by an increasing proportion of unsecured debt,” the agency said in a statement.

However, Moody’s noted, “Macquarie AirFinance's customer concentration is relatively high, with its top 10 customers representing approximately 48% of total fleet net book value, pro forma for the Alafco fleet acquisitions. Like other lessors, Macquarie AirFinance's customers include both more established as well as weaker airlines, including operators that have reorganized through recent bankruptcies.”

Macquarie AirFinance will use the proceeds to fully repay its secured term loan and partially refinance its secured acquisition facility, as it completes its acquisition of the remaining Alafco aircraft.

© 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.