Kroll Bond Rating Agency (KBRA) has upgraded the issuer and senior unsecured debt ratings of Nordic Aviation Capital Designated Activity Company (“NAC” or “the Company”), an aircraft leasing company based in Denmark, to BBB+ and BBB, respectively, with stable outlooks.

The BBB+ issuer rating of NAC reflects successful integration of the Jetscape and Aldus acquisitions, which has continued to yield business synergies in addition to NAC’s solid financial strength that compares favorably to peers and a growing market presence. NAC’s emergence as the largest regional aircraft lessor is a key credit strength and supports the upgrade, especially given the current industry climate, which has seen consolidation and specialization among lessors lately. The rating is also supported by the Company’s strong, seasoned management team, valuable industry relationships with regional aircraft operators and manufacturers, substantial market share of both leased turboprop and regional jet aircraft further strengthened by recent acquisitions, solid fleet growth plan and growing market presence within the regional aircraft space. Additionally, KBRA incorporated NAC’s sound historical financial performance and stable aircraft leasing industry outlook into its analysis. Primary constraints include NAC’s principally focused business model although partially mitigated by recent and marked expansion into the regional jet aircraft sector, relatively high asset encumbrance, and exposure to the competitive and cyclical global passenger airline industry.