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Moody's cuts Atlas Air, withdraws ratings
Moody's Investors Service downgraded Atlas Air Corp. and subsidiaries and withdrew the ratings. Ratings lowered include Atlas' series 2000-1 EETCs class A cut to B1 from Ba1, class B cut to Caa1 from B2 and class C cut to Ca from Caa2, series 1999-1 EETCs class A cut to B2 from Ba1, class B cut to Caa2 from B2 and class C cut to C from Caa2, series 1998-1 EETCs class A cut to B2 from Ba2, class B cut to Caa2 from Caa1 and class C cut to C from Caa3, $51.0 million secured aircraft term loan due 2005 cut to Ca from Caa3 and $137.5 million 10¾% senior unsecured notes due 2005, $153.0 million 9¼% senior unsecured notes due 2008 and $147.0 million 9 3/8% senior unsecured notes due 2006 cut to C from Ca.
Moody's said the downgrade is due to uncertainties surrounding the prolonged debt and lease restructuring program. The Enhanced Equipment Trust Certificates downgrades further reflect concern about the availability of sufficient cash flow in each transaction to allow the original terms of the debt to be met and the increased potential for principal loss to debt holders, as well as continued declines in the value of the underlying aircraft collateral.
Moody's said it withdrew the ratings because of concerns regarding the ongoing availability of information for Moody's to adequately monitor developments.
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