S&P: BOC Aviation notes A-

S&P said it assigned an A- long-term issue rating to two proposed senior unsecured notes by BOC Aviation Pte. Ltd. under the company's $10 billion global medium-term notes program.

The proceeds will be used from these five-year and 10-year notes to refinance existing debt, for capital spending and for general corporate purposes, S&P said.

The rating reflects the company's good cash flow stability from long leases, sound competitive position and support from its majority shareholder, Bank of China Ltd., the agency explained.

Tempering these strengths is BOC Aviation's leverage tolerance, high capital spending over the next three years and exposure to the industry's cyclical demand and aircraft lease rates, S&P said.

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