Fitch Places Lunar Aircraft 2020-1 on rating watch negative due to novation issue

Fitch Ratings has placed the outstanding class A, B and C notes of Lunar Aircraft 2020-1 Limited (Lunar) on Rating Watch Negative. The rating actions on Lunar are driven by the termination of purchase agreements to novate six aircraft in the pool prior to November 23, 2020 (delivery expiry date) which is 270 days after February 27, 2020 (closing date). This is a credit negative for the transaction as it results in potential higher concentration risks compared to the closing date, and may result in further negative rating actions. On July 10, a notice was provided to noteholders by the