Aviation Capital Group LLC's Proposed Senior Unsecured Notes And Floating-Rate Senior Unsecured Notes Rated 'A-'

NEW YORK (S&P Global Ratings) Nov. 28, 2018--S&P Global Ratings today assigned its 'A-' issue-level rating to Newport Beach, Calif.-based Aviation Capital Group LLC's (ACG) proposed senior unsecured notes and floating-rate senior unsecured notes. The company will use the proceeds from these notes for general corporate purposes, including to repay some of its debt and acquire aircraft.

Our issuer credit rating on ACG reflects the company's position as a major
provider of aircraft operating leases and as an owner of new technology
aircraft with relatively stable asset values. In addition, we take into
account the inherent cyclicality of the company's demand and aircraft lease
rates as well as the often weak credit quality of its airline customers.

ACG is a wholly owned subsidiary of Pacific Life Insurance Co. We consider ACG to be strategically important to its parent under our group rating methodology and thus we rate it three notches higher than our 'bbb-' stand-alone credit profile on the company.

ISSUE RATINGS--SUBORDINATION RISK ANALYSIS

Capital structure
ACG's capital structure consists primarily of senior unsecured debt with
a modest amount of secured debt, all of which was issued at the parent
level.

Analytical conclusions
We rate the company's unsecured debt 'A-', the same level as our
long-term issuer credit rating, because no significant elements of
subordination risk are present in its capital structure.