Avolon Holdings Funding And Park Aerospace Holdings Senior Unsecured Note Ratings Raised To 'BB+' (Recovery Rating: '4')

NEW YORK (S&P Global Ratings) Feb. 13, 2019--S&P Global Ratings today raised its issue-level ratings on Avolon Holdings Funding Ltd.'s and Park Aerospace Holdings Ltd.'s outstanding senior unsecured notes to 'BB+' from 'BB' and revised its recovery ratings on the notes to '4' from '5'. The '4' recovery rating indicates our expectation that lenders would receive average recovery (30%-50%; rounded estimate: 40%) of principal in the event of a payment default. We raised our issue ratings on the notes following the company's recent paydown of its outstanding secured debt with cash on hand and the proceeds from asset sales and unsecured debt issuance, which has improved the recovery prospects for the unsecured lenders. The notes are guaranteed by the companies'

...NEW YORK (S&P Global Ratings) Feb. 13, 2019--S&P Global Ratings today raised its issue-level ratings on Avolon Holdings Funding Ltd.'s and Park Aerospace Holdings Ltd.'s outstanding senior unsecured notes to '##+' from '##' and revised its recovery ratings on the notes to '4' from '5'. The '4' recovery rating indicates our expectation that lenders would receive average recovery (30%-50%; rounded estimate: 40%) of principal in the event of a payment default. We raised our issue ratings on the notes following the company's recent paydown of its outstanding secured debt with cash on hand and the proceeds from asset sales and unsecured debt issuance, which has improved the recovery prospects for the unsecured lenders. The notes are guaranteed by the companies' parent Avolon Holdings Ltd. Our '##+' issuer credit rating on aircraft lessor Avolon Holdings Ltd. reflects its position as the third-largest aircraft lessor. It also incorporates Japanese financial services group ORIX Corp.'s acquisition...

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