Moody's Investors Service raised the credit profile for FTAI Aviation Ltd. and its related securities, moving the companys corporate family rating up to Ba1 from Ba2 and upgrading the senior unsecured rating of its subsidiary, Fortress Transportation and Infrastructure Investors LLC, to Ba1 from Ba2. The rating on FTAI Aviations preferred stock was also lifted to Ba3 (hyb) from B1 (hyb). Concurrent with the upgrades, Moodys changed the outlook on both entities from positive to stable.
The rating action reflected what Moodys described as the combined effects of profitable aftermarket aerospace products and aircraft leasing operations, a reduction in leverage, and disciplined execution of the firms strategy. FTAI Aviation concentrates on service and leasing activity for CFM56 engines that power narrow-body Airbus and Boeing aircraft, and the company also holds about 180 V2500 engines.
Leverage improvements were central to the agencys assessment. On a debt-to-EBITDA basis, leverage decreased to roughly 3.0x as of March 31, 2026, down from 3.7x a year earlier. Alongside that drop, the company has expanded its servicing footprint through acquisitions of maintenance, repair and operations facilities in multiple locations.
In 2025, FTAI Aviation established the Strategic Capital Initiative, or SCI, a dedicated financing vehicle intended to deploy about $6 billion in capital. The SCI is funded by Deutsche Bank, Apollo and other investors, and it provides financing for the acquisition of on-lease aircraft. FTAI Aviation will manage the vehicles assets, hold a 19.0% equity stake in the SCI, collect management and incentive fees for overseeing those assets, and supply engine exchange services for the engines owned by the vehicle.
Moodys noted that the companys strategic shift toward managing externally financed assets should boost free cash flow generation by reducing dependence on opportunistic asset purchases. Management projects free cash flow around $1 billion in 2026, in part because it expects the inventory build for the aerospace products segment to be complete.
Liquidity positions were also cited as a supporting factor for the upgrades. The company has full availability under an increased $2.025 billion revolving credit facility that matures in April 2031.
Moodys framed the stable outlook as reflective of FTAI Aviations continued transition to a more capital-light business model, its sustained liquidity, and the company's commitment to a target leverage profile. The agency identified clear metrics that could prompt future rating action. Upward movement would require maintenance of debt-to-EBITDA below 3.0x and evidence of a commitment to an investment-grade capital structure. Conversely, a downgrade could follow if debt-to-EBITDA were to remain above 4.0x or if liquidity were to deteriorate.
The rating changes formalize Moodys view that recent operational performance, paired with strategic financing arrangements and a larger credit facility, have materially altered FTAI Aviations risk profile compared with the prior year. The agencys guidance also makes explicit the leverage and liquidity thresholds that will govern future credit direction.