NEW YORK, NY (May 2, 2019) – Kroll Bond Rating Agency (KBRA) affirms the issuer rating of BBB+ and the senior unsecured debt rating of BBB for Nordic Aviation Capital Designated Activity Company (NAC or “the Company”), the largest regional aircraft lessor in the world. The Outlook for the ratings is Stable.
The issuer rating of NAC reflects the Company’s strong, seasoned management team, valuable industry relationships with regional aircraft operators and manufacturers, substantial market share of leased turboprop and regional jet aircraft, successful execution on its growth plan and continued funding profile improvements. Additionally, KBRA incorporated NAC’s sound historical financial performance and stable aircraft leasing industry outlook into its analysis. Primary constraints include NAC’s higher leverage and asset encumbrance compared to higher-rated aircraft lessor peers, but at levels in-line with its current rating category. Additionally, exposure to the competitive and cyclical global passenger airline industry limits upwards rating momentum. Given NAC’s substantial encumbered asset base, its senior unsecured rating is lowered by one notch to BBB.
The ratings are based on KBRA’s Global Finance Company Rating Methodology published on November 28, 2017.