Fitch Ratings completed a peer review of five publicly-rated aircraft leasing firms, resulting in the upgrade of two aircraft lessors and the affirmation of the three others.

AerCap Holdings’ long-term issuer default rating (IDR) was upgraded to BBB- from BB+ and the rating outlook was revised to stable from positive, Avation PLC’s long-term IDR was affirmed at B+ with a stable outlook, Aviation Capital Group’s long-term IDR was upgraded to BBB from BBB- and the outlook revised to stable from positive, BOC Aviation’s long-term IDR was affirmed at A- with a stable outlook and SMBC Aviation Capital’s IDR was affirmed at BBB+ with a negative outlook.

The actions are supported by rated aircraft lessors’ generally strong franchise positions, capable management teams, improving funding positions and aircraft fleet characteristics as well as acceptable leverage levels relative to assigned ratings. Fitch also noted that aircraft lessors are currently benefiting from a number of supportive market dynamics including increased air travel, improved financial condition of airlines, growing adoption of aircraft leasing, low interest rates, generally accessible funding markets and the absence of exogenous shocks.