巴黎人娱乐城

巴黎人娱乐城-Chicago/Taipei/London-01 July 2021: 巴黎人娱乐城 has completed its periodic peer review of aircraft lessors, which is comprised of seven rated firms. As part of the review, 巴黎人娱乐城 has affirmed the following ratings and revised the Rating Outlooks to Stable from Negative:

--Air Lease Corporation’s (Air Lease) Issuer Default Rating (IDR) affirmed at ‘BBB’/Stable;
--Avolon Holdings Limited’s (Avolon) IDR affirmed at ‘BBB-’/Stable;
--Dubai Aerospace Enterprise Ltd.’s (DAE) IDR affirmed at ‘BBB-’/Stable.

巴黎人娱乐城 has affirmed the following ratings and maintained the Outlooks, driven by institutional support considerations:

--Aircastle Limited’s (Aircastle) IDR affirmed at ‘BBB’/Stable;
--BOC Aviation Limited’s (BOCA) IDR affirmed at ‘A-’/Stable;
--SMBC Aviation Capital Limited’s (SMBC AC) IDR affirmed at ‘A-’/Negative.

巴黎人娱乐城 has also maintained AerCap Holdings N.V. (AerCap) ‘BBB-’ IDR and debt ratings on Rating Watch Negative (RWN). 巴黎人娱乐城 could resolve the RWN if and when AerCap makes sufficient progress toward securing term financing prior to the closing of the General Electric Aviation Services transaction.

Individual rating action commentaries for each of the aircraft lessors are available at . For further information on the rationale for each rating action, please refer to these commentaries.

巴黎人娱乐城’s sector Outlook for aircraft lessors remains Negative. While passenger air traffic has improved since 1H20, travel volumes, particularly on long-haul international flights, remain well below pre-pandemic levels, and remain uncertain in the near-term as a result of coronavirus variants emerging globally and slower-than-anticipated vaccine rollouts in some regions. Consequently, 巴黎人娱乐城 expects airline credit profiles will continue to be pressured, which may further impair aircraft lessor operating cash flow generation over the Outlook horizon.

For the standalone aircraft lessors (Air Lease, Avolon and DAE), 巴黎人娱乐城 believes they have sufficient liquidity to withstand near-term reductions in financing availability and lease cash flows under both 巴黎人娱乐城’s base and downside case forecasts (the assumptions for which are outlined below). These lessors also have sufficient capitalization headroom to withstand moderate impairments in the base case forecast, although some may temporarily breach the leverage threshold of 3.0x in a downside case scenario where pandemic reductions in air traffic, airline solvency and financing availability last well into 2022, leading to additional repossessions and material impairments. The revisions of the Outlooks to Stable reflect 巴黎人娱乐城’s expectation that these issuers will maintain sufficient headroom relative to 巴黎人娱乐城’s downgrade triggers for liquidity coverage (greater than 1.0x) and debt to tangible equity (below 3.0x) over the Outlook horizon.

Issuer ratings and Outlooks that incorporate institutional support considerations (Aircastle, BOCA, and SMBC) continue to be primarily influenced by the credit risk profiles of their institutional support providers and 巴黎人娱乐城’s ongoing assessment of these providers’ willingness to extend financial support to subsidiaries in the event of need. To the extent the ratings and/or Outlooks of these support providers change, so too could the ratings and/or Outlooks of the aircraft leasing subsidiaries. Changes in the standalone credit profiles of the aircraft leasing subsidiaries and/or changes in 巴黎人娱乐城’s assessment of the support providers’ willingness to extend support could also impact the ratings and/or Outlooks of aircraft leasing subsidiaries.

巴黎人娱乐城’s aircraft lessor rating review focused on financial profile dynamics (particularly liquidity coverage and leverage) under base case and downside case assumptions. 巴黎人娱乐城’s base case assumptions are as follows:

--Up to 15% cumulative lease deferrals for a six-month period, with a six-month lag in collections following the deferral period;
--Up to 10% of lessees default with 3% of the fleet being repossessed, followed by a six-month grounding of the aircraft and a 20% reduction in lease rates for the follow-on lease;
--Up to 30% of the net book value of aircraft is impaired following a customer default, partially offset by security deposits and maintenance reserves;
--Expiring leases over the next three years are renewed at a 20% lower rate;
--Unsecured bond markets are will remain accessible.

巴黎人娱乐城’s downside assumptions are as follows:

--Up to 30% cumulative lease deferrals for a nine-month period, with a nine-month lag in collections following the deferral period;
--Up to 20% of lessees default with 5% of the fleet being repossessed, followed by a nine-month grounding of the aircraft and a 30% reduction in lease rates for the follow-on lease;
--Up to 35% of the net book value of aircraft is impaired following a customer default, partially offset by security deposits and maintenance reserves;
--Expiring leases over the next three years are renewed at a 30% lower rate;
--Unsecured bond markets are will remain accessible.

Contact:

Johann Juan (Primary Analyst – AerCap, Avolon)
Senior Director
+1-312-368-3339
巴黎人娱乐城, Inc.
One North Wacker Drive
Chicago, IL 60606

David Petu, CFA (Primary Analyst – Air Lease, Aircastle, SMBC AC)
Director
+1-212-908-0280

Christian Kuendig (Primary Analyst – DAE)
Senior Director
+44 20 3530 1399
巴黎人娱乐城, Ltd.
30 North Colonnade, Canary Wharf
London E14 5GN

Katie Chen (Primary Analyst – BOCA)
Director
+886 20 8175 7614
巴黎人娱乐城 Australia Pty Ltd, Taiwan Branch
Suite A2, 24F, No. 68
Sec. 5, Zhongxiao E. Rd., Xinyi Dist.,
Taipei, Taiwan 110

Media Relations: Sandro Scenga, New York, Tel: +1 212 908 0278, Email: sandro.scenga@thefitchgroup.com
Louisa Williams, London, Tel: +44 20 3530 2452, Email: louisa.williams@thefitchgroup.com
Wai Lun Wan, Hong Kong, Tel: +852 2263 9935, Email: wailun.wan@thefitchgroup.com

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