Moody’s cuts six United Airlines EETCs

Moody's Investors Service said it downgraded the ratings assigned to the class A of six different enhanced equipment trust certificate (EETC) financings of United Airlines, Inc.

The Continental Airlines series 2007-1 was downgraded to Baa1 from A3, the Continental Airlines series 2009-2 was downgraded to Baa1 from A3, the Continental Airlines series 2012-1 was downgraded to A3 from A2, the Continental Airlines series 2012-2 was downgraded to A3 from A2, the United Airlines series 2016-1 was downgraded to A2 from A1 and United Airlines series 2016-2 was downgraded to A2 from A1.

The Ba2 corporate family rating of United Continental Holdings, Inc. and the stable outlook are unaffected.

The agency said the downgrades follow updates to Moody's estimates of the loans-to-value of these EETC transactions that have led to reductions in the equity cushions relative to prior estimates, some more material than others.

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