Fitch Affirms 12 & Lowers 1 Class of Delta EETCs.CHICAGO -- Fitch Ratings has affirmed 12 classes and downgraded one class of the Delta Airlines equipment trust certificates Equipment Trust Certificate A debt instrument that allows a company to take possession of an asset and pay for it over time. The debt issue is secured by the equipment or physical assets, as the title for the equipment is held in trust for the holders of the issue. When the debt is paid off, the equipment becomes the property of the issuer, as the title is transfered to the company. (ETCs) and enhanced equipment trust certificates Equipment trust certificates Certificates issued by a trust that is formed to purchase an asset and lease it to a lessee. When the last of the certificates has been repaid, title and ownership of the asset transfers to the lessee. (EETCs EETC - Electronic Engineering Times - ChinaEETC - Energy & Environmental Technologies Conference EETC - Energy and Environment Technology Center EETC - Enhanced Equipment Trust Certificate) transactions listed below. In addition, all transactions have been removed from Rating Watch Negative. Fitch placed all rated Delta ETC and EETC transactions on Rating Watch Negative on Sept. 16, 2005 following Delta Air Lines' (Delta) bankruptcy filing on Sept. 14, 2005. On Dec. 13, 2005, Fitch withdrew Delta's Issuer Default Rating (IDR) and senior unsecured debt rating. As per Fitch's criteria, Fitch's EETC rating begins with the rating on the corporate entity and takes into account the collateral supporting the transaction. As Delta is currently under bankruptcy protection and has no Fitch rating, Fitch primarily looked to at the aircraft collateral supporting the transactions to evaluate the current ratings on the outstanding notes. Fitch reviewed current values on the aircraft as well as potential stresses based on a number of factors including the aircraft type, vintage, and supporting engines. The 1992 and 1993 ETC transactions remain concerns as they are supported by poorer collateral including MD-11's. The EETC transactions have significantly better prospects for recovery as they are primarily supported by more liquid aircraft, including B737-800's, and newer vintage aircraft. E-EETCs: Delta Air Lines European Enhanced Equipment Trust Certificates, series 2001-2 -- Class A affirmed at 'BBB-'; -- Class B remains at 'CCC'. EETCs: Delta Air Lines pass-through certificates, series 2000-1 -- Class A-1 affirmed at 'B'; -- Class A-2 affirmed at 'B'; -- Class B remains at 'CCC'; -- Class C remains at 'CC'. Delta Air Lines pass-through certificates, series 2001-1 -- Class A-1 affirmed at 'B'; -- Class A-2 affirmed at 'B'; -- Class B remains rated 'CCC'; -- Class C remains rated 'CC'. Delta Air Lines pass-through certificates, series 2002-1 -- Class C downgraded to 'CC' from 'CCC'. ETCs: Delta Air Lines equipment trust certificates, series 1992 -- Class B2 remains at 'CC'. Delta Air Lines equipment trust certificates, series 1993 -- Class A2 remains at 'CC'. Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, 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. |
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