Moody’s gives Soar Wind notes Baa1

Moody’s Investors Service said it assigned a Baa1(hyb) rating to Soar Wind Ltd.’s planned dollar-denominated senior unsecured perpetual notes. The company will sell the notes under its $3.5 billion medium-term note program.

The agency concurrently assigned a Baa1(hyb) rating to the program, which is guaranteed by AVIC International Leasing Co., Ltd. However, Moody’s said the program rating does not automatically apply to notes sold under it.

Although there is an option to defer distributions, Moody’s said it rated the notes because they are not subordinated, and “Any deferral, which is cumulative in nature, would trigger dividend stoppers for the issuer and AVIC Leasing itself. Should any of these entities breach the dividend stopper, the distribution rate will increase by 300 basis points (bps) if the securities are not redeemed. Moody's therefore believes that there is a strong incentive for the issuer to continue making distributions to investors on the notes,” the agency said in a press release.

The outlook is stable.

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