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Published on 6/6/2016 in the Prospect News Investment Grade Daily.

Moody’s gives United Airlines EETCs Aa3, A2

Moody's Investors Service said it assigned ratings to United Airlines, Inc.'s series 2016-1 enhanced equipment trust certificates (EETCs): $728.726 million class AA with legal final maturity of Jan. 7, 2030 at Aa3 issued by United Airlines Pass Through Trust 2016-1AA and $324.090 million class A with legal final maturity of Jan. 7, 2030 at A2 issued by United Airlines Pass Through Trust 2016-1A.

The proceeds will finance 18 Boeing aircraft, newly manufactured between January 2016 and May 2017: four B737-800s, five B737-900ERs, two B787-9s and seven B777-300ERs.

The corporate family rating of United Continental Holdings, Inc. is Ba3.

The outlook on the certificates and on United is positive.

Moody’s said the ratings reflect the credit quality of United Continental; the typical benefits of EETCs, including the applicability of Section 1110, cross-default and cross-collateralization of the equipment notes; 18-month liquidity facilities; cross-subordination pursuant to the Intercreditor Agreement; and Moody's belief that each of the aircraft models will remain core to United's network during the transaction's 12-year term.


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