Hong Kong, 5 July 2022 - China Aircraft Leasing Group Holdings Limited ("CALC" or the “Company”, HKSE stock code: 01848; together with subsidiaries, the “Group”), a full value chain aircraft solutions provider for the global aviation industry, is pleased to announce that its corporate family rating (“CFR”) is affirmed by Moody’s Investor Service Pty Ltd (“Moody’s”) at Ba1 with a stable outlook; and its Long-Term Issuer Default Rating (“IDR”) is affirmed by Fitch Ratings (“Fitch”) at BB+ with a stable outlook.
Moody’s advises in its credit opinion noting that despite the decline in the aviation sector resulting from the coronavirus pandemic, CALC’s performance and profitability in its core business are relatively stable, and are likely to improve with the recovery in the aviation industry. Moody’s affirmed that CALC’s 1) portfolio of young and narrow-body aircraft is conducive to mitigating risks; 2) good client base supports stable recurring profit and cash flow; 3) continuous liquidity support from China Everbright Group (“CEG”) and its affiliates helps reduce liquidity risk. In addition, Moody's also pointed out that CALC's exposure to Russian airlines is limited. Potential provisions or write-offs of related aircraft could have a negative impact in net profit in 2022, but will not significantly hurt the CALC’s operations and credit profile.
Fitch recognizes the strategic importance of CALC’s operations to CEG and a high degree of strategic alignment with CEG. CEG has strong operational and managerial control over CALC with a record of providing funding and liquidity support. CALC is expected to receive continuous support from CEG and its affiliates, including China Everbright Bank Company Limited. Fitch affirms 1) CALC has a quality fleet focusing on in-demand fuel-efficient narrow-body aircraft, with 82% of its portfolio estimated to consist of Tier 1 assets, which can reduce asset-quality risk during downturns; 2) CALC has sufficient liquidity yet limited exposure to distressed airlines; 3) Profitability has improved with slightly lowered leverage in 2021.