Dépêches

Fitch Affirms AerCo Limited

Dépèche transmise le 27 octobre 2011 par Business Wire

CHICAGO--(BUSINESS WIRE)--Fitch Ratings has taken the following rating actions on AerCo Limited:

--Class A-3 notes affirmed at 'BBsf', Rating Outlook Negative;

--Class B-1 and B-2 revised to 'Csf/RR6' from 'Csf/RR5';

--Class C-1, C-2, and D-2 affirmed at 'Dsf/RR6'.

Consistent with Fitch's criteria titled 'Global Rating Criteria for Aircraft Operating Lease ABS,' dated April 25, 2011, Fitch's analysis incorporated the expected net cash flow to be available to service debt over the remaining life of the transaction. Fitch's expected cash flow takes several factors into account, including aircraft age, portfolio value, Fitch's expectations for the commercial aviation industry, remarketing expenses and downtime, potential lease rates on the aircraft, and perceived liquidity of the aircraft in the portfolio.

The affirmation of the class A-3 notes at 'BBsf' with a Negative Outlook is representative of multiple factors. Under Fitch's cash flow analysis, the class A-3 notes were found to be modestly short of passing certain 'BBsf' stressed-case scenarios. However, the collateral position of the notes, as measured by the loan to value (LTV) ratio, has improved since the last review due to principal amortization and the payout of the class A-4 notes. As such, Fitch has not downgraded the notes at this time, since leverage has improved, the transaction has a long remaining term, and the currently strong airline operating environment could support improving lease rates in the near term.

The revision to the Recovery Rating (RR) for the Class B-1 and B-2 notes reflects the decreased recovery expectations as interest shortfalls continue to accumulate and the classes remain locked out from either principal or interest distributions.

The 'Dsf/RR6' rating on the class C-1, C-2, and D-2 notes indicates that Fitch does not expect the accumulating interest shortfalls will be recouped as the notes are not expected to receive any further distributions.

Additional information is available at 'www.fitchratings.com'. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.

Applicable Criteria and Related Research:

--'Global Structured Finance Rating Criteria' dated Aug. 4, 2011;

--'Criteria for Structured Finance Recovery Ratings' dated July 11, 2011;

--'Global Rating Criteria for Aircraft Operating Lease ABS,' dated April 25, 2011.

Applicable Criteria and Related Research:

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=646569

Counterparty Criteria for Structured Finance Transactions

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=605425

Global Rating Criteria for Aircraft Operating Lease ABS

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=620835

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