S&P rates BOC Aviation notes A-

S&P said it assigned its A- long-term issue rating to an issuance of HK$450 million 3.6% seven-year senior unsecured notes by BOC Aviation Ltd. (A-/stable/--) under the company's US$10 billion global medium-term note program.

BOC Aviation expects to use the proceeds for refinancing, capital spending and general corporate purposes.

“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. (A/stable/A-1),” S&P said in a news release.

“Tempering these strengths are BOC Aviation's leverage tolerance, high capital spending, and exposure to the industry's cyclical demand and aircraft lease rates.”

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