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 ''  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  Corporate Rating Methodology - Including Short-Term Ratings and Parent and Subsidiary Linkage  Additional Disclosure  Solicitation Status  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)  
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