Kroll Bond Rating Agency assigned issuer and senior unsecured ratings of A to Aviation Capital Group, an aircraft leasing company headquartered in Newport Beach, CA. The outlook on the ratings is stable.
KBRA considers ACG’s stand-alone credit profile to be A-, which reflects the company’s long and stable track record, strong market position, experienced management team, prudent risk management culture and relatively low leverage metrics comparable to other highly rated aircraft leasing companies. These strengths are balanced by the need for additional equity for continuous significant growth, the recent increase in impairment charges in 2016 and 2017, the cyclical nature of the industry and potential credit issues of airline customers as well as event risks in general.
The A issuer and senior unsecured ratings of ACG benefit from the strong credit profile of its majority shareholder, Pacific Life Insurance Company, and the strategic importance of ACG to Pacific Life. In KBRA’s view, ACG provides Pacific Life a great source of uncorrelated business and earnings diversification, taxable deductions through depreciation expenses for flight equipment and relatively high return on equity. In addition, the ongoing involvement of Pacific Life in ACG’s strategic direction, the long and close relationship between the two as well as Pacific Life’s publicly stated intent to remain the majority shareholder in the event of a successful partial initial public offering of ACG all evidence the strategic importance of ACG to Pacific Life.
Today’s general aviation customers are similar to most consumers — they want access to the latest technology, and they expect products to adhere to safety standards. The top agenda items of the General Aviation Manufacturers Association make it clear that... read more
Wouldn’t it be great to be able to use Amazon Prime to hire salespeople? You would type in exactly what you’re looking for, read the reviews and a rep would be delivered to your door the next day. In this... read more