S&P assigns BB+ to AerCap notes

Standard & Poor's said it assigned its BB+ issue-level rating and 3 recovery rating to AerCap Ireland Capital Ltd. and AerCap Global Aviation Trust’s (both of which are wholly owned subsidiaries of, and guaranteed by, AerCap Holdings NV) $400 million senior unsecured notes due 2020.

The 3 recovery rating indicates an expectation that lenders would receive meaningful (50%-70%; lower end of the range) recovery of their principal in the event of a payment default.

The companies will use the proceeds for general corporate purposes, including the acquisition of aircraft and debt repayment.

S&P said the ratings reflect AerCap’s position as one of the two largest aircraft lessors and the company's increased – albeit declining – debt leverage following its May 14, 2014, acquisition of competitor International Lease Finance Corp. The agency assesses the company's business risk profile as "satisfactory" and its financial risk profile as "significant."

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