Fitch rates Hawaiian Airlines notes B+

Fitch Ratings said it assigned B+/RR2 ratings to Hawaiian Airlines Inc.’s planned senior secured notes. The transaction will be backed by Hawaiian’s loyalty program and its brand intellectual property.

Newly formed special purpose vehicles, Hawaiian Brand Intellectual Property, Ltd. and Hawaiian Miles Loyalty, Ltd., will issue the notes that will be guaranteed by Hawaiian Airlines and Hawaiian Holdings, Inc.

Fitch said it reviewed appraisals of the collateral that indicate the transaction is overcollateralized, which supports the rating uplift. Fitch also believes the importance of the collateral to Hawaiian creates a strong incentive to continue servicing the debt even in a distress scenario.

Fitch also removed Hawaiian’s issuer default rating from rating watch negative and assigned a negative outlook. The agency affirmed the ratings at B-. This action applies to Hawaiian Holdings and its primary operating subsidiary, Hawaiian Airlines.

“Fitch believes that the additional liquidity provided by the transaction gives Hawaiian a meaningful amount of cushion with which to weather the current crisis. Announcements about effective Covid vaccines that occurred since Fitch’s prior rating action also provide some confidence around a recovery in passenger traffic, making a downgrade into the CCC category less likely,” the agency said in a press release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.