Moody's downgrades Fly Leasing

Moody's Investors Service said it downgraded Fly Leasing Ltd.'s corporate family rating to B3 from B1 and its senior unsecured rating to Caa2 from B3. The agency also lowered to B2 from Ba3 the backed term loan ratings of Fly’s subsidiaries, Fly Funding II Sarl and Fly Willow Funding Ltd.

“Moody's downgrade of Fly's ratings considered the lack of a meaningful turnaround in the company's profitability and cash generating capacity and the level of uncertainty concerning its ability to generate sufficient cash to satisfy or refinance its debt obligations. This uncertainty includes pertaining to the timing and valuation of aircraft sales that appear to be necessary in order to alleviate its liquidity needs,” the agency said in a press release.

Fly’s Moody's-adjusted debt to EBITDA leverage as of March 30 was 10.7x. Moody’s said it sees leverage remaining high with moderate improvement.

The outlook remains negative.

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