Azorra's outlook has been upgraded to positive from stable by Fitch Ratings. The agency reaffirmed the company's BB- rating. This was the company's inaugural rating given in September last year.
“This achievement highlights the strength of Azorra, its strategy, and the progress we've made in scaling our platform,” said Azorra SVP of finance Claudia Ziemer.
The positive outlook follows Azorra signing definitive purchase agreements to acquire portfolios comprising 49 E-Jet aircraft and two GE CF-34 engines from Dubai Aerospace Enterprise (DAE).
Fitch noted it “anticipates Azorra will realise tangible financial benefits from the expanded portfolio, further reinforcing Azorra's position as a leading lessor in the regional and small narrowbody market.”
The agency added in its rationale that there is potential for an upgrade supported by successful acquisition completion and integration.
“This includes novating newly acquired leases, accessing unsecured capital markets to term-out acquisition financing and achieving stated financial targets aligned with management forecasts,” Fitch added.
The agency said key targets for the company include a sustained net spread profitability above 7% and maintaining a balance sheet leverage below 3x.