Fitch Ratings has confirmed the rating on BOC Aviation upsized US$500m 4.375% senior notes due 2023 at Long-Term 'A-'. The confirmation follows the increase in the size of the notes from US$350m.
The notes, which were issued under BOC Aviation's USD2bn euro medium-term note programme, were assigned a final 'A-' rating on 2 May 2013. The notes are rated at the same level as BOC Aviation's 'A-' Long-Term Issuer Default Rating (IDR). This is because the notes constitute direct, unsubordinated and senior unsecured obligations of the company, and rank equally with all its other unsecured and unsubordinated obligations. The IDR has a Stable Outlook, reflecting Fitch's view of a very high probability of extraordinary support to BOC Aviation from its ultimate parent, Bank of China Limited (BOC; A/Stable). Rating Sensitivities Any perceived changes in BOC's propensity and ability to provide support would impact BOC Aviation's IDR and hence the issue rating. Proceeds from the senior notes are to be used for the company's new capital expenditure and general corporate purposes.