BOC Aviation Ltd.#s Proposed Senior Unsecured Notes Rated #A-#

Stocks and Financial Services Press Releases Wednesday October 11, 2017 16:41
SINGAPORE--11 Oct--S&P Global Ratings

SINGAPORE (S&P Global Ratings) Oct. 11, 2017--S&P Global Ratings today said it has assigned its 'A-' long-term issue rating to a proposed issuance of senior unsecured notes by BOC Aviation Ltd. (A-/Stable/--) under the company's US$10 billion global medium-term note program.

BOC Aviation expects to use the proceeds for refinancing existing debt, capital spending, and general corporate purposes.

The rating on BOC Aviation reflects the company's good cash flow stability from long leases, sound competitive position, and support from its majority shareholder Bank of China Ltd. (A/Stable/A-1). Tempering these strengths are BOC Aviation's leverage tolerance, high capital spending over the next three years, and its exposure to the industry's cyclical demand and aircraft lease rates.

The stable outlook on BOC Aviation over the next 24 months reflects our view that the company will remain strategically important to Bank of China. We expect indirect government support to flow to BOC Aviation through the bank in the event of financial distress. We expect Bank of China to maintain a clear majority ownership in, and name sharing with, BOC Aviation over the next three years at least. In addition, BOC Aviation's leasing operations are consistent with Bank of China's strategy to diversify its earnings base into nonbanking products and outside China.

We expect BOC Aviation to maintain its market position and stable cash flow adequacy ratios through 2019. We anticipate that the company will maintain EBIT interest coverage of around 2.5x and a ratio of funds from operations to debt of close to 10% over the next 24 months. In 2016, these ratios were 3.0x and 10.5%, respectively.


Latest Press Release

IOU(TM) - E-Commerce Loyalty Platform on Blockchain

IOU Global, LTD is announcing the release of IOU(TM) - a revolutionary peer-to-peer (P2P) e-commerce loyalty platform developed on blockchain, allowing merchants and consumers to interact with each other in the competitive, secure, transparent and...

DDD clearing up the rumors about fake orders and investigation by the SEC, claiming the speculations untrue and unfounded.

"Do Day Dream" denies the rumors about fake orders and its being investigated by the SEC. It insists that it always ensures strict compliance with rules and regulations and has in place its external auditor that is internationally recognized while...

BQT(TM) A Fresh New Take On The P2P Exchange

BQT Technologies, LTD is announcing the upcoming closed-Beta release of the BQT(TM) Exchange Platform — a peer-to-peer (P2P) exchange with innovative hedge trade capabilities. This unique method embraces the spirit of decentralization and...

Standard Chartered Bank sees Thai Central Bank shift toward tightening Thailand strong heading into elections

Standard Chartered Bank maintains its call for robust global growth of 4.0% this year, the strongest in five years, as economic fundamentals have remained solid. Unlike in previous years, growth this year has been broad-based and synchronised across...

Shedding New Light on Pediatric Research by Integrating the Healthcare Providers of the Globe

Pediatric ConferenceSeries offers On-Site and Online medical Conferences effective from 2019 ConferenceSeries Pediatric Conferences reinforce the spirit of healthy neonates to build physically and mentally fit societies to excel in socioeconomic and...

Related Topics