Fitch: Etihad Airways notes B-

Fitch Ratings said it assigned an expected senior secured rating of B- to EA Partners I BV’s proposed notes with a recovery rating of RR4.

The outlook is stable.

EA Partners, a limited liability company established solely for this transaction, will on-lend the proceeds to respective obligors.

The proceeds will represent separate debt obligations of seven obligors, including Etihad Airways PJSC, Air Berlin plc, Jet Airways (India) Ltd., Alitalia Societa Aerea Italiana SpA, Air SERBIA, AD Belgrade, Air Seychelles Ltd. and Etihad Airport Services LLC.

The rating on the notes reflects the credit profiles of the obligors and is constrained at B-by obligors of the weakest credit quality, the agency said.

The on-lending of the proceeds from this transaction will create back-to-back senior unsecured claims for the relevant obligors and will rank behind each obligor’s other prior-ranking debt, including secured debt, the agency said.

In addition to Etihad Airways, the other obligors are either Etihad Airways’ subsidiaries or its equity airline partners, Fitch said.

These subsidiaries and partners are keys to Etihad Airways’ growth strategy, which aims at establishing a global network with competitive operational scale and diversity, the agency said.

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