...August 18, 2023 Avolon's credit metrics continue to perform in line with our expectations. In the first half of 2023, Avolon's lease revenues rose 7% (excluding any impact from aircraft stranded in Russia during the prior-year period). The company generated a profit of $132 million compared with a loss of $173 million in the prior-year period, which included an impairment charge of $377 million, primarily on aircraft stranded in Russia. Interest expense also increased as expected due to higher interest rates despite an almost $1 billion decline in debt since the end of 2022. We continue to expect EBIT interest coverage in the mid-1x area, funds from operations (FFO) to debt of about 8%, and debt to capital of about 70% through 2024. These metrics are based on mid-single-digit percent revenue growth and higher levels of debt and associated interest expense due to increasing levels of capital spending. We continue to believe that the governance structure of Avolon insulates the company from...
