S&P upgrades BOC Aviation

Standard & Poor’s said it upgraded the long-term corporate credit rating on BOC Aviation Pte. Ltd. to A- from BBB, along with its Asean regional scale rating to axAA from axA.

The agency also said it raised the ratings on BOC Aviation’s global medium-term notes program, drawdowns on the program and its senior unsecured notes to BBB+ from BBB-.

S&P also said it raised the Asean regional scale rating on the notes to axAA- from axA- and the Greater China regional scale rating on the notes to cnAA- from cnA-.

The outlook is stable.

The ratings also were removed from CreditWatch, where they were placed with positive implications in December.

The upgrades reflect a belief the Chinese government would extend timely and indirect support to BOC Aviation if the company faces financial distress, S&P said.

The company is strategically important to its parent, Bank of China Ltd., the agency added.

The company’s BBB- stand-alone credit profile is expected to remain stable because of steady operating and financial performances, S&P said.

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