We expect Avolon Holdings Ltd., like other aircraft lessors, will benefit from favorable demand over the next few years. We also expect the company to remain focused on improving its profitability amid ongoing order book deliveries, the recently announced acquisition of Castlelake Aviation Ltd., and somewhat increased asset sales. Therefore, we affirmed our 'BBB-' issuer credit rating on Avolon. The stable outlook reflects our expectation that Avolon's credit metrics will remain largely steady over the next 12-24 months: supported by improving profitability amid favorable demand conditions but offset somewhat by higher debt and interest expenses associated with fleet growth. We expect strong demand for aircraft to persist over the next few years as airlines continue to focus on renewing and
