NEW YORK--(EON: Enhanced Online News)--Kroll Bond Rating Agency (KBRA) has assigned an issuer rating of BBB with a stable outlook to The Milestone Aviation Group Limited (“Milestone,” “MAG,” or “the company”), a global commercial helicopter leasing company based in Dublin, Ireland.
MAG, which was founded in August 2010, provides helicopters to oil and gas, emergency medical service, search and rescue and other utility operators across the globe. While the commercial helicopter leasing industry is in its infancy and is only beginning to see the emergence of competition, MAG has a significant advantage over newer entrants in terms of scale and senior management relationships with helicopter operators and manufacturers.
The BBB issuer rating of MAG reflects the following: 1) the company’s strong market position as the leader in the helicopter leasing and financing niche; 2) its strong management and forward-looking strategy for helicopter acquisitions; 3) the economic strength of its core market – oil and gas production; and 4) the strength of helicopters, an asset class with strong residual value. The rating also reflects the limited income and cash flow associated with MAG’s short operating history, the potential for competitors to challenge the company’s market position, and MAG’s somewhat high level of asset encumbrance.
The rating was assigned using KBRA’s Finance Company Rating Methodology, published April 1, 2013.