Moody’s rates United Airlines certificates A3

Moody’s Investors Service said it assigned an A3 rating to United Airlines, Inc.’s pass-through certificates, series 2020-1.

The $3 billion of class A certificates have a legal final maturity of April 15, 2029. The final scheduled payment date precedes the respective legal final maturity date by 18 months.

“The certificates’ proceeds will pay-off the $2.75 billion aggregate outstanding amount of the company’s three separate term loan facilities that mature in March or April 2021. The aircraft, spare parts and spare engine collateral that will secure the company’s obligations under the transaction’s equipment notes are currently pledged to these respective term loans. Substantially all of the airline’s spare parts, 352 mainline aircraft and 99 spare engines will secure the certificates,” Moody’s said in a press release.

The agency also affirmed its debt ratings for United Airlines Holdings, Inc. and United Airlines, including the Ba2 corporate family, Ba2-PD probability of default, Ba1 senior secured and Ba3 senior unsecured.

The outlook is negative.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.