S&P: BOC Aviation notes BBB-

Standard & Poor's said it assigned its BBB- long-term issue rating and axA- long-term Asean regional scale rating to the S$75 million senior unsecured notes by BOC Aviation Pte. Ltd. under the company's $2 billion medium-term notes program.

S&P said the issue rating is one notch below the corporate credit rating on BOC Aviation because the company's total secured debt exceeds the notching threshold of 20% of total assets.

The company expects to use the proceeds for advance payments on aircraft purchases and to refinance maturing debt.

The rating on BOC Aviation reflects the company's good cash flow stability from long leases, sound competitive position and support from its 100%-owner Bank of China Ltd., the agency said.

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