Fitch: American Airlines EETC 2017-2 rating unchanged by upsizing

Eleanor Steed
By Eleanor Steed August 1, 2017 15:17

Fitch: American Airlines EETC 2017-2 rating unchanged by upsizing

Fitch has rated American Airlines proposed enhanced equipment trust certificates 2017-2 AA for the $544.644 million class AA notes due in October 2029 and A for the $252.254 million class A certificates due October 2029. These ratings are unchanged following American Airlines decision to upsize the size of both tranches from the original $436.7 million AA tranche and the A tranche at $202.3 million.

American added seven aircraft to the collateral pool consisting of three ERJ175s, and four 737 MAX 8s.

The initial base LTV for the ‘AA’ tranche is 39.0% as calculated by Fitch, and the initial ‘A’ tranche LTV is 57.4%.

The maximum stress case LTV’s for both the ‘AA’ and ‘A’ tranche are roughly 0.4% points lower than the figures cited in Fitch’s initial release. Fitch now calculates the maximum stress case LTV for the ‘AA’ certificates at 79.0% and for the ‘A’ certificates at 83.2%.

Fitch considers the increased size of the collateral pool to be a minor positive in terms of the affirmation factor.

Eleanor Steed
By Eleanor Steed August 1, 2017 15:17