Kroll Bond Rating Agency (KBRA) assigns senior unsecured ratings of BBB with a Stable Outlook to the senior unsecured notes to be issued by Avolon Holdings Funding Limited (Avolon Holdings Funding) and Park Aerospace Holdings Limited (Park Aerospace). Both Avolon Holdings Funding and Park Aerospace are direct wholly-owned subsidiaries of Avolon Holdings Limited (Avolon or the Company), an aircraft leasing company headquartered in Dublin, Ireland. The notes will have an unsecured guarantee from Avolon. KBRA most recently affirmed the issuer rating of BBB+ and a senior unsecured debt rating of BBB on August 8, 2018.
The notes will be jointly and severally guaranteed on a full and unconditional senior unsecured basis by Avolon, Avolon Aerospace Leasing Limited, Hong Kong Aviation Capital Limited, Park Aerospace Holdings Limited, CIT Aerospace LLC, CIT Group Finance (Ireland), CIT Aviation Finance III Ltd. and CIT Aerospace International (collectively, the Guarantors). The notes rank equally in right of payment with any existing and future senior indebtedness of the Issuer and Guarantors. The notes rank senior to any existing and future subordinated indebtedness of the Issuer and Guarantors and subordinated to all existing and future secured indebtedness of the Issuer and Guarantors. The notes rank structurally subordinated to all indebtedness and other liabilities of Avolons subsidiaries that does not guarantee the notes. Avolon intends to use the net proceeds from the sale of the notes for general corporate purposes, which could include the repayment of existing indebtedness.
KBRAs most recent affirmation for Avolon can be found here.
The ratings are based on KBRAs Global Finance Company Rating Methodology, published November 28, 2017.
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KBRA is a full service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus, is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider, and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.
Chui, Senior Director
Marjan Riggi, Senior Managing Director