Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers A > Headlines for American Airlines Inc. > News item |
Moody's rates American Airlines notes
Moody's Investors Service said it has assigned American Airlines Inc.'s fixed-rate secured notes due 2009 a rating a Ba2 for the $180.5 million class A notes and a rating of B2 for the $53.5 million class B notes.
Moody's said the ratings of the notes reflect the rating of American (B3 senior implied, Caa2 senior unsecured) as the underlying obligor, and the spare parts provided as security for the transaction. Supporting the class A notes is the value of collateral provided to the transaction, a liquidity facility that provides for payment of up to four semiannual interest payments in the event of a default on the part of American.
The rating of the class B notes reflects their subordination and lack of control in the event of a default by American, the lack of a liquidity facility to defer default on the notes and the relatively high loan to value (70%).
The structure of the transaction is similar to that of a typical Enhanced Equipment Trust Certificate.
© 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.