S&P: No change to Fly Leasing

Standard & Poor's said its ratings and outlook on Fly Leasing Ltd. are unaffected by the company's announcement that Onex Corp. has agreed to acquire a 50% stake in BBAM Ltd., which manages Fly's portfolio and of which Fly owns 15%.

Onex will also acquire $25 million of Fly's stock.

In S&P's opinion, the transaction will not likely result in any changes to Fly's financial policy and will not materially change its business risk profile, which the agency said it views as fair, or its financial risk profile, which is significant.

The agency said the rating on Fly reflects inherent risks of cyclical demand and lease rates for aircraft, a substantial percentage of encumbered assets, high debt leverage and the company's complicated ownership structure.

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