Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers I > Headlines for International Lease Finance Corp. > News item |
Moody's lowers International Lease view to negative
Moody's Investors Service said it affirmed the Ba3 corporate family rating of International Lease Finance Corp. and changed its outlook to negative.
This follows news that the company's parent, American International Group (AIG) will sell International Lease to AerCap Holdings NV for $3 billion in cash and 97.6 million AerCap common shares, resulting in an estimated transaction value of $5.4 billion based on AerCap's closing share price on Dec. 13, Moody's said.
The ratings and outlook of AIG are unaffected by the International Lease rating action, the agency said.
The sale to AerCap provides clarity regarding International Lease's ownership and strategy, both a source of business uncertainty since AIG designated it a non-core holding following the financial crisis of 2008-09, Moody's said.
After acquiring International Lease, AerCap will have a leading market presence in commercial-aircraft leasing, a valuable order position in new technology aircraft, the agency said, and opportunities to profitably strengthen International Lease's fleet mix and improve operating efficiency.
However, the transaction will expose the company's creditors to execution risk associated with AerCap's integration of much larger aircraft fleet and transition of key personnel and management systems, Moody's said.
© 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.