We continue to assess Dublin-based aircraft lessor Avolon Holdings Ltd. as an insulated subsidiary of Bohai Capital Holding Co. Ltd., whose controlling shareholder is China-based HNA Group. We are affirming our ratings on Avolon, including the 'BB+' corporate credit rating. We are also assigning our 'BB' issue-level and '5' recovery ratings to subsidiary Avolon Holdings Funding Ltd.'s proposed $500 million unsecured notes due in 2023. Proceeds will be used for general corporate purposes, including debt repayment. The outlook is stable, reflecting our expectation that earnings and cash flow will continue to benefit from strong demand for aircraft leasing, with EBIT interest coverage in the high-1x area and funds from operations (FFO) to debt in the high-single-digit percent area through 2019.
