KBRA Assigns BBB Rating to Avolon Holdings Funding and Park Aerospace Senior Unsecured Notes

NEW YORK–(BUSINESS WIRE)–Kroll Bond Rating Agency (KBRA) assigns senior unsecured ratings of BBB
with a Stable Outlook to the senior unsecured notes to be issued by
Avolon Holdings Funding Limited (“Avolon Holdings Funding”) and Park
Aerospace Holdings Limited (“Park Aerospace”). Both Avolon Holdings
Funding and Park Aerospace are direct wholly-owned subsidiaries of
Avolon Holdings Limited (“Avolon” or “the Company”), an aircraft leasing
company headquartered in Dublin, Ireland. The notes will have an
unsecured guarantee from Avolon. KBRA most recently affirmed the issuer
rating of BBB+ and a senior unsecured debt rating of BBB on August 8,
2018.

The notes will be jointly and severally guaranteed on a full and
unconditional senior unsecured basis by Avolon, Avolon Aerospace Leasing
Limited, Hong Kong Aviation Capital Limited, Park Aerospace Holdings
Limited, CIT Aerospace LLC, CIT Group Finance (Ireland), CIT Aviation
Finance III Ltd. and CIT Aerospace International (collectively, the
“Guarantors”). The notes rank equally in right of payment with any
existing and future senior indebtedness of the Issuer and Guarantors.
The notes rank senior to any existing and future subordinated
indebtedness of the Issuer and Guarantors and subordinated to all
existing and future secured indebtedness of the Issuer and Guarantors.
The notes rank structurally subordinated to all indebtedness and other
liabilities of Avolon’s subsidiaries that does not guarantee the notes.
Avolon intends to use the net proceeds from the sale of the notes for
general corporate purposes, which could include the repayment of
existing indebtedness.

KBRA’s most recent affirmation for Avolon can be found here.

The ratings are based on KBRA’s Global
Finance Company Rating Methodology
, published November 28, 2017.

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About KBRA and KBRA Europe

KBRA is a full service credit rating agency registered with the U.S.
Securities and Exchange Commission as an NRSRO. In addition, KBRA is
designated as a designated rating organization by the Ontario Securities
Commission for issuers of asset-backed securities to file a short form
prospectus or shelf prospectus, is recognized by the National
Association of Insurance Commissioners as a Credit Rating Provider, and
is a certified Credit Rating Agency (CRA) by the European Securities and
Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is
registered with ESMA as a CRA.

Contacts

Analytical Contacts:
Danise
Chui, Senior Director
(646) 731-2406
[email protected]

Marjan Riggi, Senior Managing Director
(646) 731-2354
[email protected]

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