Fitch Ratings has upgraded AerCap Holdings N.V.'s Long-Term Issuer Default Rating (IDR) and its rated subsidiaries to 'BBB+' from 'BBB', with a Stable Outlook. This upgrade reflects AerCap's leading scale and franchise strength as the world's largest aircraft lessor, coupled with its business model resilience and consistent operating performance.
The rating action acknowledges AerCap's sound net margin profitability, solid capital market access, and the maintenance of strong credit metrics across various economic and market cycles. Fitch also highlighted the company's solid asset quality performance and its progress in transitioning its portfolio towards a 75% new technology aircraft target.
AerCap's leverage, as calculated by Fitch, stood at 2.4x as of December 31, 2024, which is below management's target of 2.7x. The company's robust liquidity position, with $21 billion in total sources covering expected capital expenditures and debt maturities by 2.0x, further supported the upgrade. This improved rating is expected to enhance AerCap's funding flexibility and cost of capital.
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