Fitch Rates ILFC's Unsecured Notes 'BB' and Secured Notes 'BBB-'

CHICAGO--(BUSINESS WIRE)-- Fitch rates International Lease Finance Corp.'s (ILFC) $500 million issuance of senior unsecured notes 'BB' and $3.9 billion issuance of secured notes 'BBB-'. Both ratings are consistent with Fitch's earlier statements provided in releases dated Aug. 9, 2010 and Aug. 11, 2010.

ILFC's 'BB' Issuer Default Rating (IDR) and Evolving Rating Outlook are unaffected by the assignment of these ratings. (For further information on ILFC's existing ratings, please refer to Fitch's press release 'Fitch Affirms ILFC's IDR at 'BB'; Outlook Evolving' dated April 30, 2010.)

The unsecured notes will pay interest semi-annually on each March 1 and Sept. 1 at a rate of 8.875% per year, beginning March 1, 2011, and will mature on Sept. 1, 2017. The notes are not guaranteed by ILFC's parent, any of ILFC's subsidiaries or any third party.

The senior secured notes consist of the following:

--$1.35 billion aggregate principal amount of 6 1/2% senior secured notes due 2014 will pay interest, semi-annually, on each March 1 and Sept. 1, beginning March 1, 2011, at a rate of 6.5% per year;

--$1.275 billion aggregate principal amount of 6 3/4% senior secured notes due 2016 will pay interest, semi-annually, on each March 1 and Sept. 1, beginning March 1, 2011, at a rate of 6.75% per year; and

--$1.275 billion aggregate principal amount of 7 1/8% senior secured notes due 2018 will pay interest, semi-annually, on each March 1 and Sept. 1, beginning March 1, 2011, at a rate of 7.125% per year.

All of the notes are senior secured obligations of ILFC and will be guaranteed on a senior secured basis by certain of ILFC's wholly owned subsidiaries. The notes and guarantees will be secured on a first-priority basis by a portfolio of selected aircraft and related leases and other property.

Proceeds from both transactions were used to repay outstanding secured loans from AIG Funding in full and for general corporate purposes.

Fitch has assigned the following ratings:

International Lease Finance Corp.

--$500 million senior unsecured notes 'BB';

--$3.9 billion senior secured notes 'BBB-'.

Additional information is available at 'www.fitchratings.com'

Applicable Criteria:

--'Global Financial Institutions Rating Criteria', Aug. 16, 2010.

--'Finance and Leasing Companies Criteria', Aug. 16, 2010.

Related Research:

Global Financial Institutions Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=547685

Finance and Leasing Companies Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=493344

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