Fitch lowers EA Partners

Fitch Ratings said it downgraded the senior secured rating of EA Partners I BV's $700 million 6 7/8% notes due 2020 to CCC from B- and EA Partners II BV's senior secured $500 million 6 ¾% notes due 2021 to CCC from B.

The recovery ratings are RR1.

The downgrades follow the filing for administration by Alitalia, one of the obligors under the transactions, Fitch explained.

According to Alitalia, the airline has continued to make all payments under all its financial obligations, the agency noted.

But Fitch said it believes Alitalia's liquidity and credit profiles are very weak and are unsustainable without additional shareholder support.

Given the transactions' recourse to each obligor on a several basis, the senior secured ratings are constrained at the level of obligors of the weakest credit quality, the agency said.

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