Fitch Downgrades Triton Aviation Finance

TESTCustomwebLP TESTCustomwebLP
By TESTCustomwebLP TESTCustomwebLP April 25, 2014 19:36

Fitch Downgrades Triton Aviation Finance

Fitch Ratings has downgraded the Class A notes of Triton Aviation Finance (TAF) to ‘CCsf’ from Bsf’ and the Class B-1, B-2, C-1, and C-2 notes are affirmed at ‘Csf’.

The downgrade of the class A-1 notes to ‘CCsf’ from ‘Bsf’ reflects Fitch’s view that default is considered probable as trust cashflow has deteriorated due to the aircraft pool’s illiquidity and age, says Fitch. The transaction has also been negatively affected by low utilization and small returns on aircraft sales or part-outs. Fitch expects the class to recover 70% (RE 70%) of its current balance. The affirmation of classes B, C, and D, all with RE0%, reflects the inevitability of default and the expectation of no additional payments to those classes.

If the demand of older aircraft declines quicker than Fitch’s assumption, the cash flow generated will be reduced this may cause negative rating actions on class A-1 notes. Additionally, many of the aircraft may reach the end of their useful life quicker than assumed due to their age, which may cause negative rating actions.

Due to the correlation between the global economic conditions and the airline industry, the ratings may be impacted by the strength of the macro-environment over the remaining term of this transaction. Global economic scenarios that are inconsistent with Fitch’s expectations could lead to further negative rating actions.

TESTCustomwebLP TESTCustomwebLP
By TESTCustomwebLP TESTCustomwebLP April 25, 2014 19:36
Write a comment

No Comments

No Comments Yet!

Let me tell You a sad story ! There are no comments yet, but You can be first one to comment this article.

Write a comment

Only <a href="http://www.aviationnews-online.com/wp-login.php?redirect_to=http%3A%2F%2Fwww.aviationnews-online.com%2Ffinance%2Ffitch-downgrades-triton-aviation-finance%2F"> registered </a> users can comment.