Fitch Takes rating actions on Air Canada’s EETCs

Fitch Ratings has downgraded Air Canada’s 2013-1 class A certificates to ‘BBB’ from ‘A-‘ and affirmed the airline’s other three existing EETC transactions rated by Fitch, including eight tranches. Fitch has also removed Air Canada’s 2017-1 transaction from Rating Watch Negative. The Rating Watch was primarily driven by the inclusion of 737 MAXs in the collateral pool and concern about the aircraft type during the MAX grounding. The Rating Watch also reflected general concerns around ratings in the ‘AA’ category that are supported by aircraft valuations given the severity of the pandemic’s impact on aviation. Fitch has affirmed Air Canada’s