Kroll Bond Rating Agency Assigns a Rating of A- to Senior Unsecured Notes due 2018 and Senior Unsecured Notes due 2024 Issued by Air Lease Corporation

NEW YORK--()--Kroll Bond Rating Agency (“KBRA”) assigns a rating of A- to Air Lease Corporation’s (“ALC” or the “Company”) two tranches of $500 million senior unsecured notes. The outlook on the rating is stable.

ALC announced today an offering of $500 million in aggregate principal amount of 2.125% senior unsecured notes maturing on January 15, 2018 (the “2018 Notes”) and $500 million in principal amount of 4.250% senior unsecured notes maturing on September 15, 2024 (the “2024 Notes” and, together with the 2018 Notes, the “Notes”). The Notes are part of ALC’s general unsecured senior obligations and rank equally in right of payment with all of ALC’s existing and future unsecured senior indebtedness.

ALC intends to use the net proceeds from the sale of the Notes for general corporate purposes, which could include the purchase of commercial aircraft and the repayment of existing indebtedness.

KBRA notes that ALC’s A- rating with a stable outlook is supported by the Company’s strong financial fundamentals, as reflected by its low leverage, strong liquidity and cash-flow metrics, and largely unencumbered asset base. The rating is also based on the Company’s strong management profile and the growing strength of its global franchise, which is backed by a young and in-demand fleet, a diverse customer base and a strong order book. It is further supported by the positive dynamics of the global aircraft leasing markets notably toward greater aircraft utilization by the airlines. These strengths are balanced by the cyclical nature of the industry, potential credit quality issues in the airline industry as a whole, the Company’s dependence on wholesale funding, and event risks related to air travel in general. The ratings and supporting rationale is available at the following link: Air Lease Corporation Rating Report.

The rating was assigned using KBRA’s Finance Company Rating Methodology, published on April 1, 2013.

About Kroll Bond Rating Agency

KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).

Contacts

Analytical:
Kroll Bond Rating Agency
James Neira, 646-731-2326
Director
jneira@kbra.com
or
Christopher Whalen, 646-731-2366
Senior Managing Director
cwhalen@kbra.com
or
Marjan Riggi, 646-731-2354
Managing Director
mriggi@kbra.com
or
Leah Hallfors, 240-394-4147
Senior Analyst
lhallfors@kbra.com

Contacts

Analytical:
Kroll Bond Rating Agency
James Neira, 646-731-2326
Director
jneira@kbra.com
or
Christopher Whalen, 646-731-2366
Senior Managing Director
cwhalen@kbra.com
or
Marjan Riggi, 646-731-2354
Managing Director
mriggi@kbra.com
or
Leah Hallfors, 240-394-4147
Senior Analyst
lhallfors@kbra.com