Fitch rates United Airlines pass-throughs A, BB+

Fitch Ratings said it assigned the following expected ratings to United Airlines, Inc.'s (B, positive) proposed series 2014-1 pass through trusts: $736,647,000 class A certificates due in April 2026 A(EXP); and $212,812,000 class B certificates due in April 2022 BB+(EXP).

The outlook is positive.

Fitch said the A-tranche rating was primarily driven by a high level of overcollateralization and a high quality collateral pool, which support the agency's expectations that A tranche holders should receive full principal recovery prior to maturity even in a harsh stress scenario.

The BB+ rating for the B-tranche represents a four-notch uplift (maximum is five per Fitch's EETC criteria) from United's issuer default rating of B. This primarily reflects Fitch's view of the affirmation factor for this collateral pool (the likelihood that United would choose to affirm the aircraft in a potential default scenario), the agency said.

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