China Aircraft Leasing Group (CALC) has received a rating of “BB+” from Fitch Ratings to the US$300 million 4.7% bonds due 2022 and US$200 million 5.5% bonds due 2024 issued by its wholly-owned subsidiary CALC Bond 3 Limited. Moody's Investors Service Pty Ltd (Moody's) also assigned a Ba2 backed senior unsecured rating to the two bonds.
The ratings of the existing bonds are in line with CALC’s Long-Term Issuer Default Rating (IDR) of “BB+” it previously received from Fitch. Fitch believes that the bonds are unconditionally and irrevocably guaranteed by CALC, and will at all times rank at least equally with all other present and future unsecured and unsubordinated obligations of CALC and CALC Bond 3 Limited.
CALC has previously received a corporate family rating (CFR) of Ba1 and a foreign currency and local currency issuer ratings of Ba2 from Moody’s with a stable outlook. The ratings of the existing bonds are in line with CALC’s Ba2 issuer rating.
Mike Poon, CEO of CALC, commented: “We are pleased with the Fitch rating results, another strong endorsement from an authoritative international credit rating agency. We believe these will further strengthen investors’ confidence in CALC’s existing bonds, which will be conducive to their liquidity and market performance. With a more dynamic participation in the USD bond market, CALC is well-positioned to capture market opportunities as the aviation sector gradually recovers.”
