Moody’s moves AerCap trend to positive

Moody's Investors Service said it revised the outlook to positive from stable and affirmed the Baa3 backed issuer rating of AerCap Holdings NV, the Baa3 backed senior unsecured rating of AerCap Ireland Capital DAC, the Ba1(hyb) backed junior subordinate rating of AerCap Global Aviation Trust, and the Ba2(hyb) preferred stock rating of International Lease Finance Corp.

“AerCap's outlook was revised to positive from stable based on Moody's expectation that AerCap will generate stronger and less volatile profitability and cash flow compared to peers over the next 12 – 18 months, reflecting its increased competitive strength, sector leading scale and improved efficiency of operations. Moody's also anticipates that AerCap will continue to maintain strong liquidity even as its debt refinancing needs, and aircraft acquisition expenditures rise in 2023 and subsequent years,” the agency said in a press release.

Moody’s said it forecasts AerCap's cash flow will drive down its debt-to-tangible net worth leverage to less than 3x (Moody's adjusted) by the end of 2022. AerCap's leverage rose to 3.2x after it recorded $2.7 billion of pre-tax charges in the first quarter of 2022 relating to its Russia exposure.

© 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.