PIF-owned AviLease has achieved investment grade ratings from Moody's and Fitch, the lessor said on April 29, 2025.
The company was rated Baa2 with stable outlook by Moody's and BBB with stable outlook by Fitch. AviLease said the ratings reflect its “strong financial position, high-quality portfolio of aircraft and strategic alignment with Saudi Arabia's Vision 2030”. The Vision 2030 is Saudi programme that aims to increase deliver economic, social, and cultural diversification.
“Fitch believes AviLease plays a key role in Saudi Vision 2030, particularly as it is the sole aircraft lessor in the country, facilitating the development of its domestic and international air travel networks,” Fitch read in its rationale. Fitch added that the Vision 2030's goal to boost tourism to the country places AviLease in a “unique position” to play a key role in the strategy.
“From day one, AviLease was set up with an investment grade profile in mind,” commented AviLease CEO Ted O'Byrne. “Achieving investment grade ratings in under three years since our establishment is a remarkable feat, and we believe it positions AviLease within a select group of lessors in the industry in record time.”
AviLease chairman Fahad AlSaif commented: "The investment grade ratings from Moody’s and Fitch, underscore the quality of our aircraft leasing platform both in terms of operational excellence and financial robustness. These ratings will enable AviLease to access global capital markets to finance its business strategies, positioning itself at the forefront of the aircraft leasing industry, in complete alignment with the National Aviation Strategy and Saudi Arabia’s Vision 2030."
Fitch added in its rationale that AviLease had a “modest franchise” with a contracted fleet consisting of 189 owned and managed aircraft as of the end of 2024. In addition, it said the company had a liquid portfolio with a weighted average age of five years and weighted average remaining lease term of 6.8 years as of the end of last year. Fitch noted rating constraints include its “smaller scale and shorter operating track record” compared to other lessors with higher ratings. AviLease was founded in 2022.
Additionally, due to the nature of AviLease being a PIF-owned company, Fitch said there the company has an “inherent Saudi concentration” with its portfolio.
“At end-2024, the largest customer accounted for 13.6% of net book value, while exposure to Saudi Arabia-domiciled lessees was 23%,” Fitch added. The rating agency added that it expects this Saudi concentration to dissipate over the long term as AviLease continues to grow.
Moody's rationale noted AviLease's “high-quality fleet” adding that it consisted primarily of highly sought after new technology aircraft such as the 737 MAX family and A320neo family aircraft. In addition, the rating agency said the lessor benefitted from its “significantly lower” debt to equity leverage compared to other rated lessors. The agency echoed similar sentiments to Fitch's, noting its concentration in Saudi Arabia, as well as its shorter operating history.
“Nevertheless, AviLease's management team has deep experience within the aircraft leasing sector, with several senior leaders having previous experience at Stanard Chartered PLC's aircraft leasing platform acquired by AviLease in 2023 as well as other large aircraft leasing companies,” Moody's said in its rationale. “AviLease has an ambitious growth plan and aims to become a top 10 global aircraft lessor by 2030, which will have long-term benefits but carries short- and medium-term operational and execution risks.”
A week prior to securing its investment grade ratings, AviLease had closed its $1.5bn unsecured revolving credit facility. The facility brought its immediately available committed facilities to $2.25bn with it adding to its existing revolver of $750 million.