Moody’s ups Hawaiian Airlines EETC

Moody's Investors Service said it upgraded its rating on the series 2013-1 A-tranche enhanced equipment trust certificates (EETCs) issued by Hawaiian Airlines, Inc. to Baa3 from Ba1.

The rating on the B-tranche of this transaction remains unchanged at B1.

The corporate family rating of Hawaiian Airlines’ parent, Hawaiian Holdings, Inc. is B3 and the rating outlook is stable. Hawaiian Holdings guarantees Hawaiian Airlines’ obligations under the equipment note indentures that underlie its EETC.

Moody’s said the upgrade of the A-tranche considers the success Hawaiian has achieved in integrating the A330-200 into its network since the transaction came to market in May 2013. At that time, the agency had concerns about Hawaiian's ability to profitably deploy all of its A330-200s, mostly because of the competitive nature of the international markets it would seek to serve and the prior uneven success in achieving acceptable profitability across various markets.

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