Moody's upgrades Avolon

Moody's Investors Service said it upgraded the corporate family rating of Avolon Holdings Ltd. to Baa3 from Ba1, senior unsecured ratings of Avolon Holdings Funding Ltd. and Park Aerospace Holdings Ltd. to Baa3 from Ba2 and the senior secured rating of Avolon TLB Borrower 1 (US) LLC to Baa2 from Baa3.

Moody's also said it assigned a Baa3 rating to the proposed multi-tranche senior unsecured notes of Avolon Holdings Funding.

This concludes a review of Avolon's ratings initiated April 8, Moody's explained.

The outlook is stable.

The upgrades are based on further transformation of Avolon's funding structure resulting from the proposed issuance of $1.8 billion of senior unsecured notes and intention to use the proceeds to repay secured debt, the agency explained.

Avolon has progressively reduced its secured debt reliance and increased its unencumbered assets, strengthening its financial flexibility, Moody's said.

The upgrades also are based on the company's strong liquidity management and profitability, characteristics that the agency said it expects will continue to compare well with similarly rated peers.

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