S&P applies BBB- to Air Lease notes

S&P said it assigned its BBB- issue-level rating to Air Lease Corp.'s senior unsecured notes.

The company will use the proceeds for general corporate purposes, including aircraft purchases and debt repayment.

S&P said the corporate credit rating reflects Air Lease’s position as a midtier – albeit rapidly growing – provider of aircraft operating leases, its young and diverse aircraft fleet and its relatively low debt leverage for an aircraft lessor.

The inherent cyclicality of the company's demand and aircraft lease rates, along with its airline customers' often weak credit quality, offset these positive factors.

The agency assesses Air Lease's business risk profile as satisfactory and its financial risk profile as intermediate.

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