S&P lifts BOC Aviation notes

S&P said it raised the rating on BOC Aviation Pte. Ltd.'s senior unsecured notes under its global medium-term note program to A- from BBB+.

The agency also said it raised the long-term Asean regional scale ratings on the company's issues in Asean currencies drawn under this program to axAA from axAA-.

S&P also said it raised the Greater China national scale rating on yuan-denominated issues drawn under this program to cnAA from cnAA-.

The agency also said it affirmed the company's A- long-term corporate credit rating and axAA long-term Asean regional scale rating.

The outlook is stable.

The ratings reflect an expectation that the company will preserve its sound market positions in the global aviation leasing industry, S&P explained.

The ratings also consider that the company intends to keep leverage at long-standing consistent levels, the agency said, and maintain strong ties with parent company, Bank of China Ltd., over the next two years.

The notes were upgraded because senior unsecured lenders are sustainably and markedly less disadvantaged compared with secured lenders given that BOC Aviation has substantially reduced its priority debt, S&P said.

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