Fitch acts on American Airlines certificates

Fitch Ratings said it downgraded American Airlines' 2015-1, 2014-1 and 2013-1 class A certificates and affirmed American's other enhanced equipment trust certificate ratings, including the B tranches for the 2015-1 and 2014-1 transactions and all tranches of six other transactions. Fitch also removed American's 2017-2 and 2013-2 certificates from rating watch negative.

“The three downgrades are primarily driven by weakened collateral coverage driven by lower secondary market values for the 777-300ERs contained in the affected transactions. While loan-to-value ratios for American's other EETC transactions have also weakened since Fitch's prior review, collateral coverage remains adequate to pass the relevant stress scenarios supporting the current senior tranche ratings, while expected affirmation and liquidity features continue to support existing subordinated tranche notching from American's B- issuer default rating (IDR),” Fitch said in a press release.

Fitch downgraded American's 2015-1 class A certificates to BB+ from BBB, American's 2014-1 class A certificates to BBB- from BBB and its 2013-1 class A certificates to BB- from BB.

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