S&P rates BOC Aviation notes A-

S&P said it assigned an A- long-term issue rating to a proposed issuance of senior unsecured notes by BOC Aviation Ltd. under the company's $10 billion global medium-term note program.

The proceeds will be used for refinancing, capital spending and general corporate purposes.

The ratings reflect the company's good cash flow stability from long leases, sound competitive position and support from its majority shareholder, Bank of China Ltd., S&P said.

Tempering these strengths are BOC Aviation's leverage tolerance, high capital spending and exposure to the industry's cyclical demand and aircraft lease rates, the agency said.

The stable outlook considers that over the next 24 months, the company will remain strategically important to Bank of China, S&P said.

Indirect government support is expected to flow to BOC Aviation through the bank in an event of financial distress, the agency added.

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