S&P: BOC Aviation notes A-

S&P said it assigned an A- long-term issue rating to a proposed issuance of senior unsecured notes by BOC Aviation Ltd. under the company's $10 billion global medium-term note program.

The proceeds for refinancing existing debt, capital spending and general corporate purposes, the agency said.

The rating on BOC Aviation reflects the company's good cash flow stability from long leases, sound competitive position and support from its majority shareholder, Bank of China Ltd., S&P said.

Tempering these strengths are BOC Aviation's leverage tolerance, high capital spending over the next three years and its exposure to the industry's cyclical demand and aircraft lease rates, the agency said.

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