S&P ups some American Airlines EETCs, lowers one

S&P said it raised its issue-level ratings on five of American Airlines Inc.'s EETCs, the 2014-1 class A and 2015-1 class A certificates and the following EETCs originally issued by US Airways Inc. (now American Airlines Inc.): 2011-1 class A, 2012-1 class A and 2013-1 class A, to A+ from A.

At the same time, S&P said it lowered the issue-level rating on American Airlines' 2015-1 class B certificates to BBB from BBB+.

“We raised our issue-level ratings on the five EETCs following our upgrade of two French banks that provide the liquidity facilities for these certificates: Natixis SA and Credit Agricole SA. Our review concluded that the other characteristics of the EETCs were sufficiently strong to support an A+ rating,” S&P said in a news release.

“Our downgrade of the 2015-1 class B certificates did not relate to its liquidity provider but rather to our view that its collateral coverage had weakened beyond our expectations and we do not expect it to recover. We now estimate that the loan-to-value ratio of these certificates is around 80%,” S&P 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.