Kroll Bond Rating Agency (KBRA) assigns a senior unsecured rating of A- with a Stable Outlook to the two-part Medium-Term Notes, Series A, due 2025 and due 2030, to be issued by Air Lease Corporation (NYSE: AL, 'Air Lease' or 'the Company'), an aircraft leasing company headquartered in Los Angeles, California.
The company intends to use the proceeds for general corporate purposes, which may include the purchase of aircraft and the repayment of existing indebtedness. KBRA most recently affirmed the Company's issuer and senior unsecured debt ratings of A- on December 11, 2019.
The Notes will be Air Lease's senior unsecured obligations and will rank equally in right of payment among themselves and with its existing and future senior indebtedness. The Notes will rank senior in right of payment to any future subordinated unsecured indebtedness and will be effectively subordinated to its existing and future secured indebtedness to the extent of the value of the assets securing such indebtedness. The Notes will be structurally subordinated to all existing and future indebtedness and other liabilities of our subsidiaries.
The Notes will be senior in right of payment to any of its existing and future obligations that are expressly subordinated or junior in right of payment to the Notes pursuant to a written agreement.
The ratings of Air Lease are driven by a highly experienced management team with decades of solid track records and the Company's solid performance history since inception with no impairment or credit losses. The ratings are supported by strong financial fundamentals, as reflected by a low leverage strategy, strong profitability, liquidity and cash-flow metrics, and largely unencumbered asset base. The ratings also take into account Air Lease's global franchise, a young and in-demand fleet, a wide and diverse customer base, a solid order book and substantial forward lease placement of orders as well as a stable outlook of the global aircraft leasing industry. These strengths are balanced by the disciplined funding and placement planning required to manage the significant order book, an element of key-man risk despite good succession planning, the cyclical nature of the industry, potential credit quality issues in the airline industry as a whole, and event risks related to air travel in general.
The ratings are based on KBRA's Global Finance Company Rating Methodology, published on November 28, 2017.
Analytical Contacts:
Danise Chui, Senior Director
(646) 731-2406
dchui@kbra.com
Marjan Riggi, Senior Managing Director
(646) 731-2354
mriggi@kbra.com
Business Development Contact:
Nish Kumar, Senior Director
(646) 731-3372
nkumar@kbra.com
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KBRA is a full-service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus. KBRA is also recognized by the National Association of Insurance Commissioners as a Credit Rating Provider and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.
AIR LEASE CORPORATION 
