S&P ups Avation issue rating to B+

S&P said it affirmed its B+ long-term issuer credit rating on Avation plc. The outlook remains positive.

At the same time, S&P said it raised the long-term issue rating on the senior unsecured notes to B+ from B and removed the rating from CreditWatch where it was placed with positive implications. Avation Capital SA issued these bonds under the medium-term note program that Avation guarantees.

“The upgrade is driven by a US$50 million addition to the existing US$300 million issue and repayment of US$49 million of senior secured debt. We therefore evaluate the recovery rating on the notes at 4, from 5 previously, because we expect more value to flow to the unsecured lenders in the event of a default,” S&P said in a news release.

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