Fitch upgrades Avolon Holdings

Fitch Ratings said it upgraded the long-term issuer default rating on Avolon Holdings Ltd. to BB+ from BB.

Fitch also upgraded the long-term issuer default ratings and senior unsecured debt ratings of subsidiaries, Avolon Holdings Funding Ltd. and Park Aerospace Holdings Ltd., to BB+ from BB.

The outlook remains positive.

The upgrades reflect continued de-leveraging and funding profile improvement by Avolon, Fitch said.

The upgrades also consider the repayment of an intercompany loan between Avolon and Hong Kong Bohai Leasing Asset Management Corp. Ltd. through a $240 million dividend to the parent company, the agency said.

Fitch said it views the elimination of material intercompany transactions positively.

The company has an improved credit quality due to new owners and board representation by ORIX Corp., along with an enhanced governance framework, Fitch said.

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