Press Release




Fitch affirmed CALC’s long term issuer rating at BB+ with a stable outlook

China Aircraft Leasing Group Holdings Limited ("CALC" or the “Company”, HKSE stock code: 01848; together with subsidiaries, the “Group”), a full value chain aircraft solutions provider for the global aviation industry, is pleased to announce that Fitch Ratings (“Fitch”), in an official rating report issued on 3 August 2022, has affirmed CALC’s long term issuer default rating at “BB+” with a stable outlook. The agency has also affirmed the rating on the senior unsecured notes issued by CALC Bond 3 Limited and under the medium-term note (MTN) programme by CALC Bonds Limited at “BB+”.


The report highlighted that CALC’s fleet mainly comprised highly liquid narrow-body aircraft, 82% of its portfolio consisted of Tier 1 assets, which help reduce asset-quality risk during downturns. CALC has around 66% of its portfolio (based on Fitch's estimate of aircraft values) leased to Chinese airlines, mainly to the three major domestic airlines and their affiliates, which benefit from Chinese government. CALC also has limited exposure to troubled airline companies. The one-off impairment charges for the first half of 2022 related to the two aircraft stranded in Russia are not expected to affect CALC’s operating cash flow and funding and liquidity profile.


Fitch expects CALC’s aggregate liquidity to be adequate to cover its financing and refinancing needs in 2022. CALC's funding and liquidity benefit from its large undrawn committed and uncommitted credit lines, its continued access to secured and unsecured markets, and ordinary support from China Everbright Group (“CEG”) and its affiliates.


Fitch highlighted in the report CALC’s high degree of strategic alignment with CEG, as reflected in CEG’s record of providing ordinary funding and liquidity support to CALC through affiliates, including measures taken to enhance CALC’s liquidity position during the pandemic.


The results from this rating report have once again reflected the recognition by the international rating agencies for CALC’s operating strength and premium credit profile. These will help the Company lower its financing costs. With the accelerating revival of global aviation demand, CALC will tap into opportunities brought by the strong recovery of domestic and overseas markets, moving closer to its set goals.


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China Aircraft Leasing Group Holdings Limited

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