Fitch Rates BOC Aviation's CNH Senior Notes 'A-'

NEW YORK/SINGAPORE, November 04 (Fitch) Fitch Ratings has assigned BOC Aviation Pte Ltd’s (BOC Aviation) CNY1.5bn 4.2% senior unsecured notes due 2018 a final rating of ‘A-’. The notes, which are denominated in offshore yuan or CNH, are issued under the aircraft leasing company’s USD5bn euro medium-term note programme. This follows the completion of the notes issue and receipt of final documentation conforming to information already received. The final rating is same as the expected rating assigned on 29 October 2014. Proceeds from the senior notes would be used for the company’s capital expenditure and general corporate purposes.

KEY RATING DRIVERS
The notes are rated at the same level as BOC Aviation’s ‘A-’ Long-Term Issuer Default Rating (IDR). This is because the notes constitute direct, unsubordinated and senior unsecured obligations of the company, and will rank equally with all its other unsecured and unsubordinated obligations. The IDR, presently on a Stable Outlook, reflects Fitch’s view of a very high probability of extraordinary support to BOC Aviation from its ultimate parent, Bank of China Limited (BOC; A/Stable).

RATING SENSITIVITIES
Any perceived changes in BOC’s propensity and ability to provide extraordinary support to BOC Aviation would impact BOC Aviation’s IDR and hence the issue rating. For more details on BOC Aviation’s ratings and credit profile, see “Fitch Affirms Aircraft Lessors Following Peer Review”, dated 11 August 2014, and BOC Aviation’s rating report, dated 23 October 2014, available at www.fitchratings.com.