Moody's rates Setanta facility Baa2

Moody's Investors Service said it assigned a Baa2 rating to the expected senior secured credit facility to be issued by Setanta Aircraft Leasing DAC, an indirect subsidiary of AerCap Holdings NV.

AerCap's other ratings, including its Baa3 backed long-term issuer rating, the agency said, and the Baa3 long-term senior unsecured ratings of its subsidiaries AerCap Ireland Capital DAC and International Lease Finance Corp. are not affected by today's rating action.

“The Baa2 rating assigned to Setanta's senior secured credit facility is one notch above AerCap's Baa3 backed long-term issuer rating. This notching differential is based on the facility's collateral pledge of a perfected first-priority lien of the shares and equity interests of certain special purpose entities (owner SPEs) that own commercial aircraft leased by AerCap to its airline customers as well as other loan terms that Moody's expects will reduce the loss given default of the credit facility compared to AerCap's senior unsecured obligations,” the agency said in a press release.

The outlooks for Setanta and AerCap are stable.

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