Fitch Affirms Willis Engine Securitization Trust II (WEST II)

CHICAGO--()--Fitch Ratings has affirmed Willis Engine Securitization Trust II Class 2012-A Term Notes (WEST II) at 'Asf'. The Rating Outlook is Stable.

KEY RATING DRIVERS

The affirmation of WEST II Term Notes at 'Asf' reflects the performance to date along with the results of Fitch's review of the transaction. Since close, rent collections have been stable and above Fitch's initial expectations. The majority of the portfolio of engines supports current generation narrow-body aircraft, which Fitch expects stable performance from in the medium term. Additionally, the notes are able to pay in full under Fitch's cash flow analysis under an 'Asf' rating scenario. The Stable Outlook reflects Fitch's expectation of stable rating performance on this transaction. Initial key rating drivers and the rating sensitivities are further described in Fitch's report for this transaction dated September 6, 2012.

RATING SENSITIVITIES

Due to the correlation between global economic conditions and the airline industry, the ratings may be impacted by the strength of the macro-environment over the remaining term of this transaction. Global economic scenarios that are inconsistent with Fitch's expectations could lead to rating actions. Fitch, in the initial rating analysis, found the transaction to have limited sensitivity to the timing of the first recession the transaction may experience.

Additionally, changes in the airline industry can have significant impact on the ratings of this transaction. In the initial review, Fitch found the timing or degree of technological advancement in the commercial aviation space to have a moderate impact on the rating. While these factors may have a moderate impact on the performance expectation of the transaction, factors influencing the supply of and demand for the engines in this portfolio could have a larger impact on the notes' rating.

DUE DILIGENCE USAGE

No third party due diligence was provided or reviewed in relation to this rating action.

Additional information is available at www.fitchratings.com.

Applicable Criteria

Counterparty Criteria for Structured Finance and Covered Bonds (pub. 14 May 2014)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=744158

Criteria for Rating Caps and Limitations in Global Structured Finance Transactions (pub. 16 Jun 2016)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=882401

Criteria for Servicing Continuity Risk in Structured Finance (pub. 17 Dec 2015)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=875586

Global Rating Criteria for Aircraft Operating Lease ABS (pub. 26 Apr 2016)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=879831

Global Structured Finance Rating Criteria (pub. 27 Jun 2016)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=883130

Related Research

Willis Engine Securitization Trust II -- Appendix

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=683604

Additional Disclosures

Dodd-Frank Rating Information Disclosure Form

https://www.fitchratings.com/creditdesk/press_releases/content/ridf_frame.cfm?pr_id=1008273

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=1008273

Endorsement Policy

https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31

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
Surveillance Analyst
Thomas Kaiser, CPA, CFA
Associate Director
+1-312-368-3338
Fitch Ratings, Inc.
70 W. Madison Street
Chicago, IL 60602
or
Committee Chairperson
Herman Poon
Senior Director
+1-212-908-0847
or
Media Relations:
Sandro Scenga, +1 212-908-0278
sandro.scenga@fitchratings.com

Contacts

Fitch Ratings
Surveillance Analyst
Thomas Kaiser, CPA, CFA
Associate Director
+1-312-368-3338
Fitch Ratings, Inc.
70 W. Madison Street
Chicago, IL 60602
or
Committee Chairperson
Herman Poon
Senior Director
+1-212-908-0847
or
Media Relations:
Sandro Scenga, +1 212-908-0278
sandro.scenga@fitchratings.com