Kroll Bond Rating Agency has assigned issuer and senior unsecured debt ratings of A to Aviation Capital Group LLC.
The outlook is stable.
The ratings reflect the company's stable track record, solid market position, experienced management team, prudent risk management culture and relatively low leverage metrics compared to other highly rated aircraft leasing companies.
The rating agency said the strengths are balanced by the need for more equity for continuous growth, the recent increase in impairment charges in 2016 and 2017, the industry's cyclical nature and airline customers' potential credit issues. Kroll also noted that the strong credit profile of Aviation Capital's majority shareholder, Pacific Life Insurance Co., benefited the aircraft lessor.
