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

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

Fitch has been notified that Blade intends to sell a CF34-3A1 out of the trust to a third party. The engine is currently grounded. Thus, its sale would provide cash flow to the trust from what would otherwise be a non-earning asset. The proposed sale price of the engine is below the note target price as defined by the transaction documents. Fitch does not anticipate that the engine sale, in and of itself, 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'.

Applicable Criteria and Related Research:

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

--'Global Structured Finance Rating Criteria,' dated May 20, 2014.

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=748821

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, +1 312-368-2068
Director
Fitch Ratings, Inc., 70 W. Madison Street, Chicago, IL 60602
or
Secondary Analyst
Bradley Sohl, +1 212-908-0792
Senior Director
or
Media Relations:
Sandro Scenga, +1 212-908-0278
sandro.scenga@fitchratings.com

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Contacts

Fitch Ratings
Primary Analyst
Peter Manofsky, +1 312-368-2068
Director
Fitch Ratings, Inc., 70 W. Madison Street, Chicago, IL 60602
or
Secondary Analyst
Bradley Sohl, +1 212-908-0792
Senior Director
or
Media Relations:
Sandro Scenga, +1 212-908-0278
sandro.scenga@fitchratings.com