Moody’s rates American Airlines pass-throughs Baa3

Moody's Investors Service said it assigned a Baa3 rating to American Airlines, Inc.'s series 2017-1 class B $197,777,000 pass-through certificates with a legal final maturity date of Aug. 15, 2026.

The scheduled maturity date precedes the legal final maturity date by 18 months.

Proceeds will help finance 24 new aircraft that will be delivered to American between January and May.

The outlook is stable.

This junior tranche does not affect the ratings on the senior tranches of the company's series 2017-1 EETCs, which Moody's rated on Jan. 4. These ratings remain at Aa3 for the $536.811 million class AA certificates and at A2 for the $248.627 million class A certificates.

Moody’s said the ratings of the certificates reflect the credit quality of American, the credit benefits of the typical features of enhanced equipment trust certificates (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.

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