March 14, 2012 / 9:03 PM / 5 years ago

TEXT-Fitch expects to rate International Lease Finance notes 'BB'

March 14 - Fitch Ratings expects to assign a rating of 'BB' to
International Lease Finance Corp.'s (ILFC) senior unsecured notes issuance. The
notes are being issued in two tranches, with maturities in 2015 and 2019.	
	
Fitch notes that the proposed issuance is consistent with ILFC's overall
financing strategy. The proceeds will be used to repay the company's $750
million senior secured term loan due March 17, 2015, which carries an interest
rate of 6.75% (L+475 basis points with a LIBOR floor of 2.0%). The shift from
secured to unsecured funding and the extension of debt maturities are both
viewed favorably by Fitch.	
	
The notes will rank equally in right of payment with existing senior unsecured
debt. Covenants are consistent with previously issued senior unsecured debt
including a limitation restricting the ability of ILFC to incur liens to secure
indebtedness in excess of 12.5% of ILFC's consolidated net tangible assets.	
	
ILFC is a market leader in the leasing and remarketing of commercial jet
aircraft to airlines around the world. As of Dec. 31, 2011, ILFC owned an
aircraft portfolio with a net book value of approximately $36 billion,
consisting of 930 jet aircraft.	
	
Fitch expects to assign the following ratings:	
--Senior unsecured notes due 2015 at 'BB';	
--Senior unsecured notes due 2019 at 'BB'.	
	
Fitch currently rates ILFC and its related subsidiaries as follows:	
	
ILFC	
--Long-term Issuer Default Rating 'BB'; Outlook Stable;	
--$3.9 billion senior secured notes 'BBB-';	
--$750 million senior secured term loan 'BBB-';	
--Senior unsecured debt 'BB';	
--Preferred stock 'B'.	
	
Delos Aircraft Inc.	
--Senior secured debt 'BB'.	
	
ILFC E-Capital Trust I	
--Preferred stock 'B'.	
	
ILFC E-Capital Trust II	
--Preferred stock 'B'.	
	
Contact	
Primary Analyst	
Ilya Ivashkov, CFA	
Director	
+1-212-908-0769	
Fitch, Inc.	
One State Street Plaza	
New York, NY 10004	
	
Secondary Analyst	
Mohak Rao, CFA	
Director	
+1-212-908-0559	
	
Committee Chairperson	
Nathan Flanders	
Managing Director	
+1-212-908-0827	
	
	
Media Relations: Brian Bertsch, New York, Tel: +1 212-908-0549, Email:
brian.bertsch@fitchratings.com.	
	
Additional information is available at '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 and Related Research:	
--'Global Financial Institutions Rating Criteria' (Aug. 16, 2011);	
--'Finance and Leasing Companies Criteria' (Dec. 12, 2011);	
--'Fitch Affirms International Lease Finance Corp.'s IDR at 'BB'; Outlook
Stable' (Nov. 4, 2011).	
	
Applicable Criteria and Related Research:	
Global Financial Institutions Rating Criteria	
Finance and Leasing Companies Criteria

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