Seeking Alpha

AerCap downgraded at S&P after ILFC purchase

  • AerCap (AER -2.7%) financed the cash portion of the purchase (closed yesterday) primarily with new debt issuance, significantly boosting leverage, says S&P's Betsy Snyder, downgrading the credit rating to BB+ from BBB- and removing the company from CreditWatch negative.
  • "We expect the consolidated entity to generate solid cash flow and gradually decrease leverage following the merger, but we don't expect AerCap's debt leverage to return to previous levels for at least the next 18 to 24 months," she says.
  • AIG is now the owner of nearly 100M shares of AerCap.
  • Previously: AerCap rally means billions for AIG
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Comments (1)
    , contributor
    Comments (3) | Send Message
    Wouldn't a move from BBB - to BB + be an UPGRADE, not a downgrade, considering the accompanying positve remarks?
    20 May, 12:19 PM Reply Like
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