Fitch lifts American Airlines EETCs

Fitch Ratings said it took the following actions on rated enhanced equipment trust certificates issued by American Airlines Group Inc. following the completion of the merger between American Airlines and US Airways Group, Inc.:

American Airlines pass-through trust series 2013-1: $506.7 million class A certificates upgraded to A- from BBB+; $156.6 million class B certificates upgraded to BB+ from B; and $119.8 million class C certificates upgraded to B+ from CCC; and

American Airlines pass-through trust series 2013-2: $1,408 million class A certificates affirmed at BBB+; and $512 million class B certificates upgraded to BB+ from B.

Fitch initially rated the AA 2013-1 class A certificates BBB+ despite the structure's ability to pass the agency's A level stress test. The BBB+ rating reflected the inherent uncertainties involved with the bankruptcy process. The one notch upgrade follows the company's emergence from bankruptcy.

The B and C tranche ratings are notched from the B+ issuer default rating of the underlying airline. The BB+ rating for the B tranche reflects a high affirmation factor (+2 notches) and the presence of an 18-month liquidity facility (+1 notch).

The B+ rating for the C tranche reflects a high affirmation factor (+2 notches) and low recovery expectations (-2 notches).

Fitch previously rated the B and C tranches B and CCC, respectively, per its criteria for rating subordinated EETC tranches while the issuer is in bankruptcy.

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