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TEXT-Fitch raises Arab International Lease's ratings
March 14, 2012 / 4:37 PM / 6 years ago

TEXT-Fitch raises Arab International Lease's ratings

March 14 - Fitch Ratings has upgraded Arab International Lease (AIL)'s
National Long- and Short-Term ratings to 'A+(tun)' from 'BBB+(tun)' and
'F1(tun)' from 'F2(tun)', respectively. The Outlook on the National Long-Term
rating is Stable.	
	
The upgrades reflect the material increase in Banque Tuniso-Koweitienne's (BTK)
control of AIL's capital. Since 2 March 2012, AIL is 95%-owned (against 65% at
end-2011) by BTK, which in turn is 60%-owned by France's Groupe BPCE (GBPCE,
'A+'/Negative).	
	
AIL's ratings are underpinned by the support that AIL can expect, if required,
from its main direct shareholder, BTK, and from its ultimate parent, GBPCE.
Although GBPCE has strong capacity to support AIL, Fitch views the probability
of such support as moderate given that GBPCE is not a direct majority
shareholder and given AIL's limited strategic importance to GBPCE.	
	
AIL is moderately integrated within BTK, which mainly controls AIL's credit and
liquidity risks through periodic committees. Stronger integration with BTK would
result in an upgrade of AIL's national ratings.	
	
A downgrade of AIL's national ratings could be triggered by a decrease of BTK's
control in AIL, materially reduced GBPCE's interests in BTK or a significant
downgrade of GBPCE's ratings, all of which Fitch considers unlikely in the
foreseeable future.	
	
The rating actions are as follows:	
	
AIL:	
National Long-term rating: upgraded to 'A+(tun)' from 'BBB+(tun)'; Outlook
Stable	
National Short-term rating: upgraded to 'F1(tun)' from 'F2(tun)'	
National Senior unsecured debt rating: upgraded to 'A+(tun)' from 'BBB+(tun)'	
	
	
Additional information is available on www.fitchratings.com. The ratings above
were solicited by, or on behalf of, the issuer, and therefore, Fitch has been
compensated for the provision of the ratings.	
	
Applicable criteria, 'Global Financial Institutions Rating Criteria', dated 16
August 2011, 'Finance and Leasing Companies Criteria', dated 12 December 2011
and 'National Ratings Criteria', dated 19 January 2011, are available at
www.fitchratings.com.	
	
Applicable Criteria and Related Research:	
Global Financial Institutions Rating Criteria	
Finance and Leasing Companies Criteria	
National Ratings Criteria

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