AVIC's $500m unsecured notes offering rated BBB

Source: Flightglobal.com
This story is sourced from Flightglobal.com

AVIC International Finance and Investment’s $500 million senior unsecured notes have received a final rating of “BBB” from Fitch Ratings.

The $300 million, 4.75% senior unsecured notes are due 2018 and the $200 million, 6% senior unsecured notes are due in 2023.

Fitch says its used a top-down approach in its analysis.. The ratings agency has notched AVIC International's issuer default ratings three levels below the credit profile of its Chinese parent AVIC Aircraft.

“This is to reflect its strong linkages with AVIC,” says Fitch.

The stable outlook reflects Fitch's expectation of continuous parent's support for AVIC International.

Fitch notes AVIC has "consistently" provided AVIC International with direct guarantees for its borrowings. Between 1983 and 2000, AVIC provided guarantee to all of AVIC International's bank loans.

As the diversification platform of AVIC group, AVIC International operates in six segments spanning from international aviation to property to resources businesses.