S&P cuts FLYi EETCs

Standard & Poor's said it lowered its ratings on selected enhanced equipment trust certificates (EETCs) of FLYi Inc. as part of an industry-wide review of aircraft-backed debt.

S&P cut FLYi's pass-thru certificates series 1997-1A to B- from B+ and 1B to CCC- from CCC.

All ratings on FLYi, including the CC corporate credit rating, remain on CreditWatch developing where they were placed on Feb. 23.

The lower ratings reflect S&P's concern that repayment prospects for holders of aircraft-backed debt could suffer if financially weak FLYi were to file for Chapter 11 bankruptcy protection and reject the aircraft backing these EETCs.

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