Los Angeles-based commercial aircraft lessor Air Lease Corp (NYSE: AL) said that it has been assigned an investment grade corporate credit rating of BBB- with a stable outlook by US ratings agency Standard and Poor´s Ratings Services.
Additionally, ALC´s senior unsecured notes due in 2016, 2017, and 2020 will also carry the same BBB- rating, the firm said.
Standard & Poor´s highlighted in its press release that the BBB- rating reflects Air Lease Corp.´s position as a rapidly growing provider of aircraft operating leases, its ownership of young and diverse new-technology aircraft with stable asset values, and the expectation that ALC´s growth will make it among the largest players in the industry within the next few years.
ALC´s low debt to equity ratio and strong interest coverage ratios were also key to the ratings outcome, the firm said.
Having an investment grade rating allows firms to sell debt at lower prices to a broader group of investors vs being saddled with a “junk” status. Many institutional investors, such as pension funds, are barred from buying bonds with less than an investment grade rating. The rating can also help a firm secure lines of credit at competitive prices, and can help build investor confidence in the firm´s equities.
Additional information regarding ALC´s rating assignment can be found in Standard and Poor´s press release dated August 26, 2013 available on Standard and Poor´s website at www.standardandpoors.com.
Find out more at www.airleasecorp.com.