Fitch Affirms Ratings for British Airways 2013-1 Class A and Class B Certificates

  Fitch Affirms Ratings for British Airways 2013-1 Class A and Class B
  Certificates

Business Wire

CHICAGO -- June 18, 2014

Fitch Ratings has affirmed the ratings for British Airways Pass Through Trusts
Series 2013-1 as follows:

--Class A certificates at 'A'

--Class B certificates at 'BBB'

The A-tranche rating is primarily driven by a top-down analysis which
evaluates the level of overcollateralization and likely recovery in a stress
scenario. In the year since this transaction was launched market values for
the collateral aircraft (787-8, 777-300ER, and A320-200) have performed in
line with Fitch's expectations. As a result, stress case LTVs (the primary
senior tranche ratings driver) have not changed materially.

The maximum LTV produced by Fitch's stress scenario is 86.7%, which implies a
significant amount of cushion for senior tranche certificate holders. The
ratings are also supported by a strong collateral package consisting of
new-delivery Tier 1 aircraft, an 18-month liquidity facility,
cross-collateralization/cross-default features, and Fitch's assessment of the
UK insolvency regime. The rating incorporates a secondary dependence on the
credit quality of BA as the obligor under the leases.

The 'BBB' rating for the B-tranche is based on a ratings uplift compared with
BA's stand-alone credit profile, largely based on a high Affirmation Factor
and the presence of an 18 month liquidity facility. The affirmation factor for
this pool is considered high as all three aircraft types in the transaction
are core to BA's fleet plan. Fitch believes that the likelihood of these
aircraft being affirmed in a restructuring scenario effectively reduces the
B-tranche probability of default compared to BA's credit profile.

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

Applicable Criteria and Related Research:

--'Rating Aircraft Enhanced Equipment Trust Certificates' (Sept. 12, 2013).

--'Corporate Rating Methodology' (May 28, 2014).

Applicable Criteria and Related Research:

Rating Aircraft Enhanced Equipment Trust Certificates

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=717763

Corporate Rating Methodology - Including Short-Term Ratings and Parent and
Subsidiary Linkage

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=749393

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=835252

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.

Contact:

Fitch Ratings
Primary Analyst
Joe Rohlena, CFA
Director
+1-312-368-3112
Fitch Ratings, Inc.
70 W. Madison Street
Chicago, IL 60602
or
Secondary Analyst
Craig Fraser
Managing Director
+1-212-908-0310
or
Committee Chairperson
Stephen Brown
Senior Director
+1-312-368-3139
or
Media Relations:
Sandro Scenga, +1-212-908-0278 (New York)
sandro.scenga@fitchratings.com
 
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