Fitch to rate Avia Solutions bonds BB

Fitch Ratings said it affirmed Avia Solutions Group plc's long-term issuer default rating at BB with a stable outlook.

Fitch also affirmed the $300 million bonds due in December 2024 issued by ASG Finance DAC, which is 100% owned by Avia, at senior unsecured rating BB with a recovery rating of RR4.

The bonds are guaranteed by Avia and its key divisional subsidiaries accounting for over 75% of Avia's consolidated revenue.

Fitch also assigned Avia's proposed $400 million senior unsecured bonds due 2029 an expected rating of BB. The bonds will be issued by ASG Finance.

“The IDR reflects our upwardly revised projections following Avia's updated business plan alongside the aviation sector's robust expansion driving international traffic close to pre-pandemic levels,” the agency said in a news release.

“This is coupled with steady debt increase due to growth in leased fleet, leading to EBITDAR leverage to remain close to 3.0x and EBITDA margins at around 6.5% during 2023-2027.”

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