Fitch assigns BBB+ to Avicil notes

Fitch Ratings said it assigned an expected rating of BBB+(EXP) to AVIC International Leasing Co., Ltd.'s (Avicil, BBB+/stable) $500 million medium-term note program.

The agency also assigned an expected rating of BBB+(EXP) to the senior unsecured dollar-denominated notes to be issued under the program.

The proposed notes will be issued directly by Avicil and represent direct, unsubordinated, unconditional and unsecured obligations of Avicil.

The program and the proposed notes will be listed on the Hong Kong Stock Exchange and the proceeds will be used for Avicil’s working capital and for general corporate purposes.

Fitch said the program’s rating reflects the ratings that are expected to be assigned to senior notes issued under the program. The ratings on the program and the proposed senior notes issued under the program are in line with Avicil’s long-term issuer default rating of BBB+.

Avicil’s ratings are driven by the high probability of support from its parent, Aviation Industry Corp. of China (AVIC), given its strategic role within the group, and strong managerial and operational ties with AVIC, the agency explained.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.