S&P lifts AWAS

Standard & Poor's said it raised corporate credit rating to BB+ from BB on AWAS Aviation Capital Ltd. The agency also removed the ratings from CreditWatch, where they were placed with positive implications on Oct. 5.

The agency said the conversion of shareholder loans has reduced AWAS' debt to capital by about 8% to the high-70% area from the mid-80% area.

"The company's debt leverage had been among the highest of its rated peer, and the conversion of shareholder loans into equity narrows the gap somewhat," said S&P credit analyst Betsy Snyder in a news release.

However, because the company will still carry a heavy debt burden, which S&P expects to increase as it uses debt to fund new aircraft deliveries, the agency said it expects funds from operations to debt to remain at about 9%.

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