Fitch Affirms International Lease Finance Corp.'s IDR at 'A+'; Outlook Stable

Business Wire, Jan 18, 2008

CHICAGO -- Fitch Ratings has affirmed the following ratings of International Lease Finance Corp. (ILFC):

International Lease Finance Corp.

--Long-term Issuer Default Rating (IDR) at 'A ';

--Short-term IDR at 'F1';

--Senior unsecured debt at 'A ';

--Preferred stock at 'A';

--Commercial paper at 'F1'.

The Rating Outlook is Stable. Approximately $31 billion of debt as of Sept. 30, 2007 is affected by this action.

Fitch's rating affirmation reflects ILFC's leading market position within the aircraft leasing sector, well-defined operating strategy and proven ability to mitigate sector cyclicality. It also encompasses ILFC's steadily improving operating results and diverse funding profile. The improvement in ILFC's operating performance corresponds with strong sector performance due to growth in passenger traffic, particularly in developing overseas markets, and the resulting demand for aircraft and improvement in lease rates. ILFC's diverse funding profile spans across commercial paper, committed bank financing, unsecured public bonds and medium term notes, asset securitization and export credit agency guaranteed financing.

ILFC's ratings incorporate the financial strength and support of American International Group, (AIG). Also, various bank agreements require AIG to own at least 51% of ILFC. Key ratings drivers include AIG's financial performance, credit profile and demonstrated and continued support of ILFC and the company's ability to mitigate sector cyclicality and maintain broad access to capital markets to meet substantial annual funding requirements.

Fitch expects ILFC to continue to maintain a conservative liquidity position. ILFC has substantial funding availability, which includes $6.5 billion under various bank lines. If necessary, ILFC also has additional access to liquidity and financial support from AIG. Fitch also expects leverage and capital levels to remain unchanged despite payment of dividends.

Ratings concerns are centered on the ILFC's exposure to the cyclical global aerospace sector and its vulnerability to passenger traffic volatility, fuel price fluctuations and exogenous shocks such as terrorist acts or disease contagion.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.