Fitch downgrades Avation to CC

Fitch Ratings has downgraded the Long-Term Issuer Default Ratings (IDR) of Singapore-based lessor, Avation PLC and its subsidiaries, Avation Capital and Avation Group to ‘CC’ from ‘B’. Fitch has also downgraded the rating of Avation Capital’s senior unsecured notes guaranteed by Avation to ‘C’ from ‘B-‘ and maintained a ‘RR5’ Recovery Rating. The ratings have been removed from Rating Watch Negative. Fitch explained that the downgrade of Avation’s ratings reflected the “imminent refinancing risk for the company’s senior unsecured bond due in May 2021”, adding that the ‘CC’ IDR reflects Fitch’s expectation of a very high level of credit risk