S&P Global Ratings has raised Azorra Aviation Holdings’ issuer credit rating to BB from BB-, while revising the outlook to Stable from Positive.
S&P also raised Azorra’s senior unsecured notes rating to BB from BB- and its senior secured term loan rating to BB+ from BB.
The upgrades reflect Azorra’s increased scale, expanded aircraft portfolio and stable credit metrics. S&P also highlighted the company’s progress in increasing unsecured debt relative to total assets and expanding its pool of unencumbered assets.
The ratings agency cited Azorra’s focus on the small narrowbody aircraft segment, noting its lower competitive intensity and higher lease yields.
Alan Stanford, Chief Financial Officer at Azorra, said, “We are grateful that S&P has recognized the progress we have made in executing on both our investment and financing strategies. We remain focused on thoughtfully scaling our business while maintaining a disciplined approach to investing and capital deployment. This is another step in our pursuit of achieving an investment-grade rating over time.”
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Claudia Ziemer, Senior Vice President, Finance and Treasurer at Azorra, said, “The rating upgrade validates the strength of our strategy and the progress we have made in transforming our funding profile and expanding our pool of unencumbered assets. With broader access to unsecured capital, strong liquidity, and greater financial flexibility, we are well positioned to support our customers and capitalize on compelling growth opportunities throughout market cycles.”
The upgrade gives Azorra a higher issuer rating and reflects the leasing company’s expanding aircraft portfolio and changes to its funding profile.
