Fitch: American Airlines pass-throughs AA, A

Fitch Ratings said it assigns the following ratings to American Airlines, Inc.'s (BB-/stable) proposed pass-through trusts series 2017-2: (a) AA rating to the $436,669,000 class AA certificates due in October 2029; and (b) A rating to the $202,245,000 class A certificates due in October 2029.

Fitch said the ratings on both classes of certificates are primarily driven by a top-down analysis incorporating a series of stress tests, which simulate the rejection and repossession of the aircraft in a severe aviation downturn.

“The AA level rating is supported by a high level of overcollateralization (OC) and high-quality collateral supporting Fitch's expectations that senior tranche holders should receive full principal recovery prior to default even in a severe stress scenario,” the agency said in a news release.

“Likewise, the A rating on the subordinated certificates is supported by OC sufficient for the tranche to pass Fitch's A level stress scenario.”

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