Fitch Downgrades Airplanes P-T & Pegasus Aviation Securitizations.Business Editor NEW YORK--(BUSINESS WIRE)--June 24, 2002 Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. downgrades the Airplanes Pass Through Trust (APPT APPT Appointment APPT Asian Pacific Poker Tour APPT Association des Personnes de Petite Taille (French) APPT Alleviating Poverty Through Peer Training APPT Association of Private Practice Therapists ), and Pegasus Aviation Lease Securitization Securitization The process of creating a financial instrument by combining other financial assets and then marketing them to investors. Notes: Mortgage backed securities are a perfect example of securitization. May also be spelled as "securitisation. , series 1999-1 (PALS I) transactions as outlined below. APPT is also removed from Rating Watch Negative while the PALS I transaction remains on Rating Watch Negative. The above transactions and similar aircraft lease portfolio transactions were put on Rating Watch on Sept. 20, 2001 in order to evaluate how their performance would be effected by Sept. 11 and the recession. Fitch's evaluation focused on the impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. of lease cash flows and aircraft values. The primary cause of these impairments was greater than expected levels of lease defaults, lease re-negotiations, and grounded aircraft which has constrained con·strain tr.v. con·strained, con·strain·ing, con·strains 1. To compel by physical, moral, or circumstantial force; oblige: felt constrained to object. See Synonyms at force. 2. the utility of many aircraft types, some permanently. Although new defaults are likely to be limited and renegotiations are mostly complete, demand and lease rates continue weak for many aircraft types. On May 6, Fitch downgraded, affirmed and subsequently removed most aircraft lease portfolio transactions from Rating Watch, but no rating action was not taken on the APPT and PALS I transactions pending receipt of additional information. The review of APPT and PALS I is now complete and those rating changes are outlined below: Airplanes Pass Through Trust --Class A downgraded to 'A+' from 'AA'; --Class B downgraded to 'BBB+' from 'A'; --Class C downgraded to 'B+' from 'BB'; --Class D downgraded to 'CCC' from 'B'. Pegasus Aviation Lease Securitization, series 1999-1 --Class A downgraded to 'A+' from 'AA'; --Class B downgraded to 'BBB' from 'A'; --Class C downgraded to 'B' from 'BB'; --Class D downgraded to 'CCC from 'B'. All Pegasus classes Pegasus is the name of several classes of vehicles:
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