Moody's shifts Avolon view to stable

Moody's Investors Service said it changed the outlook to stable from negative and affirmed the ratings of Avolon Holdings Ltd., including its Baa3 backed issuer rating as well as the backed long-term senior unsecured ratings of subsidiaries Avolon Holdings Funding Ltd. and Park Aerospace Holdings Ltd.

The revision is based on the expectation that demand for leased aircraft will rise as air carriers rebuild capacity to serve strengthening air travel demand, helping to improve Avolon's profitability and cash flow metrics over the next 12-18 months, the agency said.

“The stable outlook also reflects Moody's expectation that Avolon will continue to maintain low debt-to-tangible net worth leverage and strong liquidity and that the financial restructuring of HNA will ease governance and financial risks,” the agency said in a press release.

Global Aircraft Leasing Co., Ltd.’s B1 rating and negative outlook are not affect by today's rating actions, Moody’s said.

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