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

Stocks and Financial Services Press Releases Tuesday May 15, 2018 10:28
SINGAPORE--15 May--S&P Global Ratings

SINGAPORE (S&P Global Ratings) May 15, 2018--S&P Global Ratings today assigned its 'A-' long-term issue rating to an issuance of senior unsecured notes by BOC Aviation Ltd. (A-/Stable/--) under the company's US$10 billion global medium-term notes program.

BOC Aviation expects to use the proceeds for refinancing, 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 two years, and 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 remain financially sound through 2018-2019. We anticipate that the company will maintain EBIT interest coverage of about 2.5x and a ratio of funds from operations to debt of close to 10% over the next 24 months. In 2017, these ratios were 2.8x and 9.2%, respectively.


Latest Press Release

USD120,000 at stake in CIMBs 3D Conquest to unearth ASEANs top #digital talents Competition sets path for nurturing crucial skills in data science, FinTech and coding among tertiary students

CIMB Group Holdings Berhad ("the Group" or "CIMB") has launched the CIMB 3D Conquest, a competition that aims to identify and attract ASEAN's top creative, young digital talent with an agile and entrepreneurial mindset. Open to all tertiary students, the...

Allianz to become Worldwide Olympic Insurance Partner

The International Olympic Committee (IOC) and Allianz today announced that the insurer will join the "Worldwide Olympic Partner" (TOP) Programme in 2021. Through this sponsorship agreement, Allianz will work with the IOC to provide innovative and...

BYFX Global Co., Limited Announces Business Launch

BYFX Global Co., Limited (BYFX Global) today announced the launch of its retail and institutional business -- offering clients around the globe top-tier liquidity and online OTC trading for Spot FX and Spot Bullion[1]. Striving towards financial...

2018 Robot World to Suggest Direction for the Fourth Industrial Revolution

Showcasing the latest robot technologies from around the world, the 2018 Robot World will be held at KINTEX, Korea from October 10-13, 2018. The Robot World (eng.robotworld.or.kr/wp), celebrating its 13th anniversary this year, consists of four main...

ชวนผู้ประกอบการเรียนรู้เส้นทางความสำเร็จของสตาร์ทอัพแอปพลิเคชัน เคลมดิ อังคาร 25 ก.ย. นี้

ตลาดหลักทรัพย์ฯ ขอเชิญผู้ประกอบการ Social Enterprise (SE) SMEs และ Startup ร่วมอบรมครั้งพิเศษในโครงการ SET Social Impact Gym หัวข้อ "Fintech vs Social Startup... Lesson Learned..." พบกับสตาร์ทอัพเจ้าของแอปพลิเคชัน "เคลมดิ" (Claim Di)...

Related Topics