|

Fitch Affirms AVIC Industry-Finance at ‘A-‘; Withdraws Ratings

ByAdmin

Fitch Ratings has affirmed the Long-Term Issuer Default Rating (IDR) of AVIC Industry-Finance Holdings Co., Ltd. (AVIC Industry-Finance) at ‘A-‘ and the Short-Term IDR at ‘F1’. Concurrently, Fitch has withdrawn all ratings of AVIC Industry-Finance for commercial reasons.

Please SUBSCRIBE to view the full content.
First month of membership is free!

The affirmation reflects AVIC Industry-Finance’s strategic importance to its parent company, Aviation Industry Corporation of China (AVIC), and the strong support it receives. AVIC Industry-Finance plays a crucial role in providing comprehensive financial services within the AVIC group and its supply chain. Fitch’s internal assessment of AVIC’s credit profile is based on anticipated support from the Chinese sovereign, which is expected to flow to AVIC Industry-Finance through AVIC.

The withdrawal of the ratings is a result of Fitch’s commercial considerations and does not reflect any change in AVIC Industry-Finance’s creditworthiness. Fitch reserves the right to withdraw or maintain any rating at any time for any reason it deems sufficient.

Prior to the withdrawal, AVIC Industry-Finance’s ratings were influenced by its significant non-group-related financial services, including commercialized leasing, trust, and securities services. These activities, while contributing to the company’s revenue, also exposed it to risks outside of AVIC’s core expertise in aviation manufacturing. Despite these challenges, AVIC Industry-Finance maintained a strong linkage with its parent company, benefiting from shared branding and operational integration.

The withdrawal of Fitch’s ratings does not impact AVIC Industry-Finance’s operations or its ability to meet financial obligations. The company continues to function as a key financial arm of AVIC, supporting the group’s activities and contributing to the development of China’s aviation industry.

Investors and stakeholders are advised to consider this withdrawal in the context of Fitch’s commercial decisions and not as a reflection of AVIC Industry-Finance’s financial health or operational performance. The company remains a significant entity within the AVIC group, with its strategic role and importance unchanged.

Similar Posts

|

Clover Aviation Capital Appoints New Head of Legal

ByAdmin

Clover Aviation Capital (Hong Kong) has announced the appointment of Luke Liberda as its new Head of Legal, succeeding Harvey Lau, who recently retired from his position as General Counsel and Head of Legal. This leadership transition marks a new chapter for Clover Aviation Capital’s legal team as it continues to support the company’s operations and strategic growth.

| | |

AK Holdings Cancels Corporate Bond Issuance for Jeju Air

ByAdmin

AK Holdings Co., the parent company of Jeju Air, has announced the cancellation of its planned corporate bond issuance. The company has also requested the credit rating agency to withdraw the associated rating for the bond. This decision marks a shift in AK Holdings’ financing strategy as it navigates ongoing challenges in the aviation sector.

| | | | | |

China Cargo Airlines Takes Delivery of One B777F

ByAdmin

China Cargo Airlines has taken delivery of a new Boeing 777 Freighter (B777F), expanding its dedicated cargo fleet with one of the most capable long-haul freighters in the market. The aircraft, bearing manufacturer serial number 69512, is powered by GE90-110B1 engines, known for their reliability and efficiency in heavy-duty operations.

| |

Cebu Pacific And flyadeal Sign Wet Lease MoU

ByAdmin

Cebu Pacific of the Philippines and flyadeal of Saudi Arabia have signed a Memorandum of Understanding (MoU)aimed at exploring strategic joint commercial initiatives between the two low-cost carriers. The agreement outlines the mutual intention to collaborate in optimizing aircraft utilization and expanding seasonal capacity through wet lease arrangements involving their Airbus A320 fleets.