S&P: Aviation Capital notes A-

S&P said it assigned an A- rating to Aviation Capital Group Corp.'s senior unsecured notes.

The proceeds will be used for general corporate purposes, including debt repayment.

The corporate credit rating reflects the company's position as a major provider of aircraft operating leases and as an owner of new technology aircraft with relatively stable asset values, S&P said.

The agency also said it takes into account the inherent cyclicality of the company's demand and aircraft lease rates, as well as the often weak credit quality of its airline customers.

Over the next few years, Aviation Capital will be accepting delivery of a relatively small number of committed new aircraft, S&P said.

However, the agency said it expects that the company will continue to take advantage of opportunistic acquisitions.

Despite the incremental debt it will take on to fund these purchases, S&P said it expects that the company's earnings and cash flow will improve and provide it with relatively stable credit metrics through 2017.

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