S&P: Aviation Capital Group outlook revised to stable

Standard & Poor’s (S&P) has revised Aviation Capital Group’s (ACG) outlook to stable from negative and affirmed its ratings on ACG, including the ‘BBB-‘ issuer credit rating. S&P stated that ACG’s credit metrics were better than expected in 2020 despite the sharp decline in air traffic that caused many of its airline customers to request relief on lease payments, primarily rent deferrals. ACG’s credit metrics have also benefitted from lower-than-expected capital spending, and hence less debt, and refinancing debt at much lower interest rates. The rating agency now expects the company’s EBIT interest coverage and FFO to debt in 2021