April 5 - Standard & Poor's Ratings Services said today that it has assigned its 'BBB-' rating to Aviation Capital Group Corp.'s (ACG's) $212 million 6% senior unsecured notes, Series D, due April 5, 2018, and $28 million 6.8% senior unsecured notes, Series E, due April 5, 2023. The issues are rated one notch below the 'BBB' corporate credit rating because of the large percentage of secured debt in ACG's capital structure (with secured debt and securitizations equal to about 43% of its total assets as of Dec. 31, 2011). The notes are a private placement. The ratings on ACG reflect its position as a major provider of aircraft operating leases, ownership of new-technology aircraft with relatively stable asset values, and potential support from parent Pacific Life Insurance Co. (the rating incorporates one notch credit for such potential support). The inherent risks of cyclical demand and lease rates for aircraft, ACG's fairly high debt leverage, and its substantial, albeit declining, percentage of encumbered assets are limiting credit considerations. The outlook is stable. The company's 2011 credit metrics were below our expectations. Our ratings incorporate an anticipated improvement in credit ratios, and we could revise our outlook to negative or lower the rating if we come to believe that will not occur. We don't consider an upgrade likely based on the company's weaker-than-expected credit metrics, but we could do so if funds from operations (FFO) to debt increased to the mid-teen percent area from 6% in 2011. We could lower the ratings if we did not expect ACG's earnings and cash flow to recover, resulting in FFO to debt remaining in the mid- to high-single digit percent area. RELATED CRITERIA AND RESEARCH 2008 Corporate Criteria: Analytical Methodology, April 15, 2008 RATING LIST Aviation Capital Group Corp. Corporate credit rating BBB/Stable/-- Senior unsecured BBB- NEW RATING Aviation Capital Group Corp. Senior unsecured $212 mil. notes due 2018 BBB- $28 mil. notes due 2023 BBB- Complete ratings information is available to subscribers of RatingsDirect on the Global Credit Portal at www.globalcreditportal.com. All ratings affected by this rating action can be found on Standard & Poor's public Web site at www.standardandpoors.com. Use the Ratings search box located in the left column.