Fitch acts on Hawaiian Airlines certificates

Fitch said it downgraded multiple tranches of Hawaiian Airlines’ enhanced equipment trust certificates.

The agency downgraded Hawaiian Airlines’ pass-through certificates series 2020-1 class B certificates to BB- from BB+. The Hawaiian Airlines 2013-1 class A certificates have been downgraded to BB from BBB- and the class B certificates have been downgraded to BB- from BB+.

“The rating actions are being driven by the combined effects of Fitch’s recent downgrade of Hawaiian’s issuer default rating to B- from B+, increased value stress assumptions utilized in Fitch’s models, which reflect the ongoing pressure on the airline industry, and updated appraisal values that show declining levels of overcollateralization for certain transactions.

Fitch affirmed the Hawaiian Airlines 2020-1 class A certificates at A-. The affirmation reflects strong levels of overcollateralization and attractive underlying collateral that continue to support the rating, the agency said.

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