S&P Global Ratings has lowered the corporate credit rating of FLY Leasing Ltd. to BB- from BB after reassessing the company under a new set of rating criteria. The rating outlook is stable.
The rating agency noted that the sale of some of FLY's aircraft has weakened its credit metrics somewhat, but as the company rebuilds its portfolio in 2017, FLY's metrics should improve again.
S&P could lower FLY's rating over the next year if aircraft lease rates decline or the company takes on a significant amount of debt. The agency noted that it could raise FLY's rating if lease rates improve substantially from current levels due to stronger demand.
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