DUBLIN, Jan 24 (Reuters) - The head of aircraft leasing company Avolon said on Wednesday it is well protected from uncertainty surrounding its ultimate parent HNA Group of China.
Ratings analysts have said Avolon would benefit from tougher guarantees that it would not be forced to bail out HNA, which controls Avolon via its 52-percent subsidiary Bohai Capital.
“We put in place over a year ago…an insulation framework that quite simply was designed to protect Avolon, financially and otherwise, in the event of any downside scenario from its parent,” Avolon Chief Executive Domhnal Slattery said.
“In my mind, that insulation framework works today,” he told the Global Airfinance conference in Dublin.
He also played down an upward spike in Avolon corporate bond rates in recent days, saying Avolon has access to multiple funding markets.
JP Morgan managing director Mark Streeter was quoted earlier by Airfinance Journal as saying Avolon’s bond yields of around 5.5-6 percent were “not competitive” and “unsustainable”. (Reporting by Tim Hepher, Editing by Conor Humphries)