S&P assigns American Airlines EETCs BB+

S&P Global Ratings said it gave its preliminary BB+ (sf) issue-level rating to American Airlines Inc.'s series 2021-1 class B pass-through enhanced equipment trust certificates. The agency earlier assigned a preliminary A- (sf) issue-level rating to American Airlines' 2021-1 class A pass-through EETCs, which rank senior to the class B certificates and are secured by the same collateral.

American Airlines plans to finance 21 new aircraft and refinance five aircraft with about $757.8 million of class A certificates and $202.1 million of class B certificates. The class B certificates have an expected final distribution date of July 11, 2030, with legal final maturity occurring 18 months later.

The transaction will be backed by 21 new Airbus A321NEO and five Embraer E175LR aircraft–with the Airbus aircraft to be delivered between January and September 2022. The E175LR aircraft were delivered in 2020. “We view these planes as valuable collateral with relatively low technological or liquidity risks,” S&P said in a press release.

The ratings on American Airlines and its debt, including the ratings on its existing EETCs, are unchanged, the agency said.

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