Moody’s rates American EETCs Aa3, A2, Baa3

Moody's Investors Service said it assigned ratings to American Airlines, Inc.'s series 2016-1 enhanced equipment trust certificates (EETCs): $447.631 million class AA with a legal final maturity date of July 15, 2029 at Aa3, $200.859 million class A with a legal final maturity date of July 15, 2029 at A2; and $174.463 million class B with a legal final maturity date of July 15, 2025 at Baa3.

The scheduled maturity dates precede the respective legal final maturity dates by 18 months.

Proceeds will be used for general corporate purposes.

American Airlines Group, Inc.’s (AAL) corporate family rating is Ba3.

The outlook on the certificates and on AAL is stable.

Moody’s said the ratings of the certificates reflect the credit quality of American, the credit benefits of the typical features of EETCs, including the applicability of section 1110, cross-default and cross-collateralization of the equipment notes, separate 18-month liquidity facilities on each class, and cross-subordination pursuant to the intercreditor agreement.

However, AAL will not guarantee American Airlines' obligations under the equipment notes that will fund the pass-through trusts, the agency said.

© 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.