On 30 August 2023, we affirmed China Aircraft Leasing Group Holdings Limited 's (CALC) Ba1 corporate family rating (CFR) and Ba2 issuer ratings, and maintained the stable outlook.

CALC's Ba1 CFR incorporates its standalone assessment of ba3; a one-notch uplift based on our assumption of a moderate level of support from China Everbright Group (CEG) and CEG's largest subsidiary, China Everbright Bank Company Limited (CEB, Baa2 stable, Baseline Credit Assessment: ba2); and a one-notch uplift that reflects our expectation of a moderate level of support from the Government of China (A1 stable) via CEG in times of need.

CALC's standalone assessment of ba3 reflects the company's high leverage and refinancing needs. These weaknesses are mitigated by the recovery of the aviation market, the company's good client base supporting stable recurring profit and cash flow, and the continued liquidity support from CEG and its affiliates, which reduces liquidity risk.