Fitch cuts EA Partners notes to CCC-

Fitch Ratings said it downgraded EA Partners I BV's $700 million 6 7/8% senior secured notes due 2020 and EA Partners II BV's $500 million 6¾% senior secured notes due 2021 to CCC- from CCC. The recovery ratings are RR2.

Fitch said the actions were driven by petition filing by Air Berlin plc, one of the obligors under the senior secured notes, to open debtor-in-possession insolvency proceedings. Given the notes' recourse to each obligor on a several basis, the senior secured ratings reflect the creditworthiness of the obligor of the weakest credit quality as well as the recovery prospects for the notes.

The agency said it assesses that the liquidity pool is not sufficient to cover the coupon payments of Air Belin and Alitalia, another obligor, for the whole duration of both transactions.

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