Fitch affirms American Airlines EETC ratings

Dino D'Amore
By Dino D'Amore May 3, 2016 11:27

Fitch affirms American Airlines EETC ratings

Fitch Ratings has affirmed the ratings for American Airlines 2013-2 Series of enhanced equipment trust certificates (EETCs) as follows:

–Class A certificates due Jan. 2023 at ‘BBB+’;
–Class B certificates due Jul. 2022 at ‘BB+’;
–Class C certificates due Jan. 2017 at ‘BB-‘.

The ratings are supported by a significant amount of overcollateralization, a very large asset pool of 75 aircraft which supports a high affirmation factor, and good quality collateral. Fitch’s review of the transaction was driven by new appraisal data that showed weakening values for some of the collateral in this pool, particularly for older vintage 737-800s and 777-200ERs. However, despite some recent deterioration in appraised values, the class A certificates continue to pass Fitch’s ‘BBB’ level stress test; therefore the ratings have been affirmed at ‘BBB+’. The subordinated tranche ratings are notched off of American Airline’s issuer Default Rating (IDR) based on the affirmation factor, which Fitch considers to be high for this transaction, and on the presence of an 18-month liquidity facility.

Dino D'Amore
By Dino D'Amore May 3, 2016 11:27