S&P rates AWAS BB, loan BBB-

Standard & Poor's said it assigned its BB corporate credit rating to AWAS Aviation Capital Ltd., along with a BBB- rating to the proposed $530 million secured term loan that matures in 2016. A recovery rating of 1 was assigned, indicating an expectation for 90% to 100% recovery for lenders in the event of a default.

The outlook is stable.

The rating is based receipt of final documents.

The ratings reflect its position as a large provider of aircraft operating leases and its diversified fleet and airline customer base, S&P said.

Limiting credit considerations include exposure to cyclical demand and lease rates for aircraft, a weaker financial profile than some of its competitors and a substantial percentage of encumbered assets, limiting options for capital raising, the agency said.

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