Fitch Ratings has assigned an expected rating of 'A-(EXP)' to BOC Aviation (USA) Corporation's (BOCA USA) proposed senior notes to be guaranteed by BOC Aviation Limited (A-/Stable), and to be issued under the USD15 billion global medium-term note (GMTN) programme of BOC Aviation.
The issuing entity of the proposed notes is BOCA USA, a wholly owned subsidiary of BOC Aviation established in 1999 and incorporated in Nevada, in the US. BOCA USA owned a total of 47 aircraft as of 31 December 2020, mainly leased to airlines operating in the US.
The proposed notes will be listed on the Singapore Exchange Securities Trading Limited and the proceeds will be used for working capital and general corporate purposes. The maturity structure will be finalised upon pricing and the final rating is contingent upon the receipt of final documents conforming to the information already received.
Fitch first rated BOC Aviation's GMTN programme 'A-' on 20 September 2012, and the rating was affirmed on 9 July 2020. BOCA USA was added as an issuer under the programme on 31 March 2021. The rating of the programme was unaffected by the change, and the proposed notes to be issued by BOCA US under the programme will be guaranteed by BOC Aviation.