Moody's downgrades CDB Aviation

Moody's Investors Service said it downgraded CDB Aviation Lease Finance DAC's long-term foreign-currency and local-currency issuer ratings to A2 from A1.

At the same time, Moody's trimmed CDBL Funding 1's backed senior unsecured note rating to A2 from A1. The notes are under a guarantee from a trust deed by CDB Aviation and a keepwell deed from China Development Bank Financial Leasing Co., Ltd., the parent company of CDB Aviation.

Moody's also revised the entity-level outlooks of CDB Aviation and CDBL Funding 1 to stable from negative.

“The downgrades reflect the company's relatively weak capital position following a loss in 2020. The weak stand-alone capital position has yet to be addressed through a capital injection from its parent, CDB Leasing, and ultimate parent, China Development Bank (CDB, A1 stable),” the agency said in a press release.

The outlook is stable.

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