Fitch Ratings has revised Aircastle Limited's rating watch status to positive from evolving, following the release of information becoming available to Fitch with respect to Aircastle's expected ownership composition and the credit risk profile of its expected ownership group.
Fitch previously placed Aircastle's BBB- long-term issuer default rating (IDR) and debt ratings on rating watch evolving on 6 November following the announced acquisition of the company by Marubeni Corporation and Mizuho Leasing Company.
Aircastle has indicated that it expects the transaction to close in mid-2020.
The revision of the rating watch status to positive from evolving reflects Fitch's view that Aircastle's ratings are likely to be upgraded or stay at their current level, while a downgrade is believed to be unlikely, Fitch said.
This reflects the joint ownership structure announced by Marubeni and Mizuho Leasing on 7 November, Fitch's view of the strategic alignment of Aircastle with its potential new ownership group and Fitch's assessment of the credit risk profile of Marubeni.
Marubeni and Mizuho Leasing will acquire 100% of the shares not currently owned. Marubeni plans to increase its existing 29% stake 50%, while a newly formed joint venture between Marubeni and Mizuho Leasing will acquire the remaining 50% of outstanding shares.
Aircastle is a lessor of midlife and older commercial aircraft. As of 30 September, Aircastle owned 268 aircraft, predominantly in the Airbus A320ceo/neo and Boeing 737NG families, along with A330 family, Boeing 777, Embraer E195, and Boeing 747F aircraft, with a net book value of $7.7 billion.