Commercial passenger aircraft leasing firm Avation PLC (LON:AVAP) has announced that Japan Credit Rating Agency (JCR) has issued a note giving the firm a long-term issuer rating of BB with a ‘stable’ outlook.
In a news release, JCR said: ”The rating on Avation reflects its logical strategy toward customer diversification, steady growth with good cash flow visibility and conservative financial policy.”
Although, it added: “On the other hand, the rating is constrained by its small size (lack of economies of scale), concentration in customers and fleet.”
JCR concluded: “Thanks to low administrative expense, return on asset is 2.6%, albeit with a small size and lack of economies of scale. JCR thinks the company will show steady growth in next 2 to 3 years in both revenue and profit in line with fleet asset growth.”