Fitch: Disclosure Update Does Not Impact Rating on BOC Aviation's MTN
OREANDA-NEWS. The 'A-' rating assigned to BOC Aviation Pte Ltd's (BOC Aviation) USD5bn global medium-term note programme is not impacted by the recent update to its programme documents, says Fitch Ratings.
The updated disclosures include references to BOC Aviation's application in March 2016 for a potential listing of its shares on the main board of the Hong Kong Stock Exchange. There have been no additional changes to the terms and conditions governing the programme.
Up to 40% of BOC Aviation's shares held by its parent, Bank of China Ltd (BOC, A/Stable), may be listed. BOC expects to retain a substantial majority shareholding of BOC Aviation after the listing and the company will remain a subsidiary of BOC and carry the BOC brand name.
Fitch views the proposed listing as neutral to BOC Aviation's current Issuer Default Rating and outlook. While the proposed change in ownership composition from 100% to a minimum of about 60% is slightly negative, BOC's continued majority ownership, shared branding and strategic support for the bank's broader efforts in aviation finance remain. This supports Fitch's view that BOC Aviation continues to remain strategically important to BOC, as defined under Fitch's 'Global Non-Bank Financial Institutions Rating Criteria'.
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