Moody’s raises Fly Leasing

Moody's Investors Service said it upgraded Fly Leasing Ltd.'s (FLY) corporate family rating to B3 from Caa1 and its senior unsecured debt rating to Caa1 from Caa3. Moody's also upgraded the first-lien-backed senior secured term loan rating of Fly Funding II Sarl to B2 from B3.

“The upgrade of FLY's ratings reflects the company's improved liquidity position and lower leverage, assisted by capital support from FLY's sponsor Carlyle Aviation Partners LLC (Carlyle Aviation), in addition to the increased collateral values of FLY's aircraft. Together, these improvements have resulted in better asset coverage and lower expected losses on FLY's bonds,” the agency said in a press release.

Moody’s noted Carlyle Aviation provided a 7.75% unsecured intercompany note due in June 2024, before the maturity of the remaining unsecured notes due in October. FLY also bought back about $150 million in senior unsecured bonds in the secondary market since the beginning of 2023. After the latest repurchase in February, the company has $150 million of bonds outstanding due Oct. 15.

The outlook is stable.

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