Fitch upgrades Avation

Fitch Ratings said it upgraded the long-term issuer default ratings of Avation plc and its subsidiaries, Avation Capital SA and Avation Group (S) Pte. Ltd., to BB- from B+.

The ratings were removed from rating watch positive.

The outlook is stable.

Concurrently, Fitch converted the rating on Avation Group (S)'s $300 million of 6½% senior unsecured notes due 2021 to BB- from BB-(EXP). Avation intends to use the net proceeds to refinance its existing 7½% senior unsecured notes due 2020, to repay certain existing junior and senior secured loans, and to pay transaction related fees and expenses.

Fitch said the upgrade reflects Avation's increased financial flexibility resulting from the unsecured notes issuance, given the increase in the proportion of unsecured debt in its capital structure and an increase in unencumbered assets.

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