NEW YORK, NY (May 7, 2018) – On May 1, 2018, Kroll Bond Rating Agency (KBRA) affirmed 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 leasing company in the world. The Outlook on the ratings is Stable.

The BBB+ issuer rating of NAC reflects the Company’s strong, seasoned management team, valuable industry relationships with turboprop operators and manufacturers, substantial market share of leased turboprop aircraft further strengthened by recent acquisitions, solid fleet growth plan, and growing market share within the regional aircraft space. Additionally, KBRA incorporated NAC’s sound historical financial performance and stable aircraft leasing industry outlook into its analysis. Primary constraints include NAC’s principally focused business model, although partially mitigated by recent and marked expansion into the regional jet sector, relatively high asset encumbrance, and exposure to the competitive and cyclical global passenger airline industry. Given NAC’s high level of asset encumbrance, its senior unsecured debt rating is rated one notch below the issuer rating at BBB.

The ratings are based on KBRA’s Global Finance Company Rating Methodology, published on November 28, 2017.