Fitch Affirms Airplanes Pass Through Trust

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings has affirmed Airplanes Pass Through Trust as follows:

--Class A-9 at 'Csf', RE 10%;

--Class B at 'Csf', RE0%;

--Class C at 'Csf', RE0%;

--Class D at 'Csf', RE0%.

KEY RATING DRIVERS

The affirmation of the classes at 'Csf' reflects Fitch's view that default is considered inevitable. The pool of aircraft consists predominately of aged, lower tier aircraft, which Fitch believes will be unable to generate sufficient cash flow to repay the notes in full. The recovery estimate of 10% reflects Fitch's expectation of principal allocation relative to the current class A-9 note balance under a base scenario. However, a positive outcome of ongoing litigation may result in higher recoveries. The class B, C, and D recovery estimates are 0% as no principal is expected to be paid as any collections will only be applied to the senior note. Furthermore, large interest shortfalls continue to grow across these three classes.

RATING SENSITIVITY

If the outcome of the trust's ongoing litigation is different than Fitch's modeled assumption, the recovery estimate on the class A-9 note may be impacted.

Due to the correlation between the macro economic conditions and the airline industry, the recovery estimates may be impacted by the strength of the global economy over the remaining term of this transaction. Global economic scenarios that are inconsistent with Fitch's expectations could lead to lower recovery estimates. For example the occurrence of an extended global recession of significantly greater severity than the last two experienced, and the resulting strain on aircraft lease cash flow, could lead to lower principal recovery on the notes.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'Global Rating Criteria for Aircraft Operating Lease ABS,' dated April 11, 2014;

--'Global Structured Finance Rating Criteria,' dated Aug. 4, 2014;

--'Structured Finance Recovery Estimates for Distressed Securities' dated Nov. 18, 2011.

Applicable Criteria and Related Research:

Global Rating Criteria for Aircraft Operating Lease ABS

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=742479

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=754389

Structured Finance Recovery Estimates for Distressed Securities

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=656557

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=981409

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

Fitch Ratings
Primary Analyst
Eric Orenstein
Associate Analyst
+1-212-908-0245
Fitch Ratings, Inc.
33 Whitehall Street
New York, NY 10004
or
Secondary Analyst
Thomas Kaiser, CPA
Associate Director
+1-312-368-3338
or
Committee Chairperson
Hylton Heard
Senior Director
+1-212-908-0214
or
Media Relations:
Sandro Scenga, +1-212-908-0278
[email protected]

Source: Fitch Ratings

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