Fitch: BOC Aviation notes A-

Fitch Ratings said it expects to assign an A- rating to BOC Aviation Pte. Ltd.'s proposed dollar-denominated senior unsecured notes.

The issuance size, fixed-rate of interest and final maturity date will be determined at the time of issuance, the agency said.

The proceeds will be used for capital expenditure and general corporate purposes, Fitch said.

The notes will be issued under the company's current $10 billion global medium-term note program, the agency said.

The notes are rated at the same level as BOC Aviation's long-term issuer default rating and existing senior unsecured debt, Fitch said.

This is because the notes will constitute direct, unsubordinated and senior unsecured obligations of the company and will rank equally with all its other unsecured and unsubordinated obligations, the agency said.

The ratings reflect a view of a very high probability of extraordinary support to BOC Aviation from its ultimate parent, Bank of China Ltd. if required, Fitch said.

This view is based on BOC Aviation's strong links with the bank, which is evident in the parent's shared branding, high level of board representation, cross-selling initiatives and contingency liquidity support, the agency said.

Counterbalancing these factors is BOC Aviation's small size relative to the broader organization and the fact that it operates in a different jurisdiction, Fitch said.

© 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.