Fitch reviews Avation, rates notes

Fitch Ratings said it placed the B+ long-term issuer default ratings of Avation plc and its subsidiaries, Avation Capital SA and Avation Group (S) Pte. Ltd., on rating watch positive.

Concurrently, the agency assigned an expected BB-(EXP) rating to Avation Capital's offering of $300 million of senior unsecured notes due 2021.

Avation intends to use the net proceeds to refinance the company's existing 7˝% senior unsecured notes due 2020, to repay certain existing junior and senior secured loans and to pay transaction related fees and expenses.

Fitch said the positive watch reflects the company’s increased financial flexibility resulting from the expected unsecured notes offering, given the increase in the proportion of unsecured debt in its capital structure and an increase in unencumbered assets.

Once the notes are issued, the agency said it would expect to upgrade the long-term issuer default rating of Avation and its subsidiaries to BB- from B+.

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