Fitch: Rating Impact Unlikely for Blade ABS on Aircraft Engine Sale

CHICAGO--()--Blade Engine Securitization LTD's (Blade) intent to sell two aircraft engines is not likely to impact ABS ratings, according to Fitch Ratings.

Fitch has been notified that Blade intends to sell a CF34-3B1 and an RB211-535E4 out of the trust to third parties. The two engines are currently grounded. Thus, their sale would provide cash flow to the trust from what would otherwise be non-earning assets. The proposed sale price of each engine is below the note target price as defined by the transaction documents. Fitch does not anticipate that the engine sales, in and of themselves, would adversely impact the ratings on the trust.

It is important to note however, that all notes currently have a Negative Rating Outlook, indicating that downward rating movements are likely over a one- to two-year period. As stated in Fitch's Feb. 14 press release affirming all outstanding notes, the Negative Outlook reflects Fitch's concerns regarding the engines' ability to generate sufficient collections and repay the notes under certain stress rating scenarios.

Fitch currently rates the trust as follows:

Blade Engine Securitization LTD

--Class A-1 notes 'Asf'; Outlook Negative;

--Class A-2 notes 'Asf'; Outlook Negative;

--Class B-1 notes 'BBBsf'; Outlook Negative.

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

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.

Contacts

Fitch Ratings
Primary Analyst
Peter Manofsky
Director
+1-312-368-2068
Fitch Ratings, Inc.
70 W. Madison Street
Chicago, IL 60602
or
Committee Chairperson
Du Trieu
Senior Director
+1-312-368-2091
or
Media Relations
Sandro Scenga, +1-212-908-0278
sandro.scenga@fitchratings.com

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Contacts

Fitch Ratings
Primary Analyst
Peter Manofsky
Director
+1-312-368-2068
Fitch Ratings, Inc.
70 W. Madison Street
Chicago, IL 60602
or
Committee Chairperson
Du Trieu
Senior Director
+1-312-368-2091
or
Media Relations
Sandro Scenga, +1-212-908-0278
sandro.scenga@fitchratings.com