Recipient email addresses will not be used in mailing lists or redistributed.
Use semicolon to separate each address, limit to 20 addresses.
characters you see
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
Already a customer?
Don't want to see this again?
Accept our to continue to Moodys.com:
AND SCROLL DOWN!
By clicking “I AGREE” [at the end of this document],
you indicate that you understand and intend these terms and conditions to be
the legal equivalent of a signed, written contract and equally binding, and
that you accept such terms and conditions as a condition of viewing any and all
Moody’s information that becomes accessible to you [after clicking “I AGREE”] (the
“Information”). References herein to “Moody’s” include Moody’s
Corporation, Inc. and each of its subsidiaries and affiliates.
Terms of One-Time Website Use
you have entered into an express written contract with Moody’s to the contrary,
you agree that you have no right to use the Information in a commercial or
public setting and no right to copy it, save it, print it, sell it, or publish
or distribute any portion of it in any form.
acknowledge and agree that Moody’s credit ratings: (i) are current opinions of
the future relative creditworthiness of securities and address no other risk; and
(ii) are not statements of current
or historical fact or recommendations to purchase, hold or sell particular
securities. Moody’s credit ratings and
publications are not intended for retail investors, and it would be reckless
and inappropriate for retail investors to use Moody’s credit ratings and
publications when making an investment decision. No
warranty, express or implied, as the accuracy, timeliness, completeness,
merchantability or fitness for any particular purpose of any Moody’s credit
rating is given or made by Moody’s in any form whatsoever.
3. To the extent permitted by law, Moody’s and its directors,
officers, employees, representatives, licensors and suppliers disclaim
liability for: (i) any indirect, special, consequential, or incidental losses
or damages whatsoever arising from or in connection with use of the
Information; and (ii) any direct or compensatory damages caused to any person
or entity, including but not limited to by any negligence (but excluding fraud
or any other type of liability that by law cannot be excluded) on the part of
Moody’s or any of its directors, officers, employees, agents, representatives,
licensors or suppliers, arising from or in connection with use of the
4. You agree to read [and
be bound by] the more detailed disclosures regarding Moody’s ratings and the
limitations of Moody’s liability included in the Information.
5. You agree that any disputes relating to this agreement or your use of
the Information, whether sounding in contract, tort, statute or otherwise,
shall be governed by the laws of the State of New York and shall be subject to
the exclusive jurisdiction of the courts of the State of New York located in
the City and County of New York, Borough of Manhattan.
Global Credit Research - 28 Jun 2010
$450 million of pass through certificates rated
New York, June 28, 2010 -- Moody's Investors Service assigned a Baa2 rating to the $450 million
of Class A Pass Through Certificates of the 2010-1 Pass Through
Trust (the "Certificates") to be issued by Delta Air Lines,
The Class A Equipment Notes ("Notes") issued by Delta and
acquired with the proceeds of the Certificates will be the primary assets
of the Pass Through Trust. The Certificates' proceeds will
fund the refinancing of twenty-two aircraft presently financed
by Delta's 2000-1 Enhanced Equipment Trust Certificates ("EETC's"),
which mature in November 2010 and two Boeing B-777-200LR's
delivered in March 2010.
The transaction documentation provides for the possible issuance of one
additional subordinated tranche of certificates at any time. The
subordination provisions of the inter-creditor agreement provide
for the payment of interest on the Class B Certificates, if issued,
before payments of principal on the Class A Certificates. Amounts
due under the Certificates will, in any event, be subordinated
to any amounts due on the Class A Liquidity Facility ("Liquidity
Facility"), which is sized to provide for three consecutive
semi-annual interest payments due the respective Certificate holders.
The ratings of the Certificates consider the credit quality of Delta as
obligor under the Notes, Moody's opinion of the collateral protection
of the Notes, the credit support of the Liquidity facility,
and certain structural characteristics of the Notes such as the cross-collateralization
and cross-default provisions and the protections of Section 1110
of Title 11 of the United States Code (the "Code"). The assigned
rating reflects Moody's opinion of the ability of the Pass Through Trustees
to make timely payment of interest and the ultimate payment of principal
at a date no later than the Final Legal Distribution date of January 2,
2020. Moody's believes that having two 2010 vintage B-777LR's
in the collateral pool increases the likelihood that Delta would affirm
its obligations under each of the Notes if it was to file for bankruptcy
because of the structure's cross-default feature.
Additionally, the B-757 and B-767 tail numbers in
this collateral pool represent the younger vintages of these aircraft
types in Delta's fleet. The cross-collateralization
of the aircraft securing each equipment note underlying the transaction
enhances the potential recovery for investors in the event of a default
on the Certificates or of the rejection of the aircraft by Delta in the
event of a bankruptcy filing and pursuant to the provisions of the Code.
Any combination of future changes in the underlying credit quality or
ratings of Delta, unexpected material changes in the value of the
aircraft pledged as collateral, and/or changes in the status or
terms of the liquidity facilities or the credit quality of the liquidity
provider could cause Moody's' to change its ratings of the Certificates.
General Structure of the Series 2010-1 EETC
The proceeds of the Certificates will initially be held in escrow and
deposited with the Depositary, The Bank of New York Mellon (short-term
rating of P-1), until the issuance of each of the twenty-four
Notes. The interest on these funds will be sufficient to pay accrued
interest on the outstanding Certificates during the Deposit Period.
The collateral pool consists of 24 Boeing aircraft, all owned by
Delta: ten B737-800's, nine B757-200's,
and three B767-300ER's presently pledged to the 2000-1
EETC and two B777-200LR's delivered new in March 2010.
The Certificates issued to finance the aircraft are not obligations of,
nor are they guaranteed by Delta. However, the amounts payable
by Delta under the Notes will be sufficient to pay in full all principal
and interest on the Certificates when due. The Notes will be secured
by a perfected security interest in the aircraft. It is the opinion
of counsel to Delta that the Notes will be entitled to the benefits of
Section 1110 of the U.S. Bankruptcy Code. Scheduled
interest payments on the Certificates will be supported by the Liquidity
Facility sized to pay up to three respective consecutive semi-annual
interest payments in the event Delta defaults on its obligations under
the Notes. The liquidity facilities do not provide for payments
of principal due, nor interest on the Certificate proceeds held
in escrow during the Deposit Period. Natixis S.A.
via its New York Branch (Moody's short-term rating of P-1)
will provide the Liquidity Facility. The liquidity provider has
a priority claim on proceeds from liquidation of the aircraft or the Notes
and other Trust collateral ahead of any of the holders of the Certificates
and is also the controlling party following a default under Notes.
The ratings of the 2010-1 Certificates benefit from the cross-collateralization
of the Notes, a feature which Moody's believes can enhance recovery
in the event of a default. The structure provides that for each
aircraft sold, the excess of sale proceeds above the payoff of the
related equipment note are made available to cover shortfalls due under
any other equipment note related to the sale of any other aircraft.
Importantly, all excess proceeds are retained until the settlement
at maturity of the last of the 24 equipment notes or the indentures are
Moody's considers the number of aircraft and the number of different aircraft
models that comprise the collateral pool when assessing the benefit of
a cross-collateralized EETC. At 24 aircraft and four models,
the collateral pool is sizeable and diverse. That the included
models are integral to Delta's short- and long-haul
routes and are mostly the younger equipment in its combined mainline fleet
supports the likelihood of affirmation by Delta of its obligations under
the related equipment notes in the event of a bankruptcy filing by Delta,
thus minimizing the probability of the cross-collateralization
benefit being called upon by creditors over the life of the transaction.
Nevertheless, Moody's believes that the inclusion of the two
777's increases the value of the cross-collateralization
feature of this EETC because of these two aircraft's large share
of the aggregate appraised value of the aircraft pool.
The principal methodology used in rating Delta is Moody's Global
Passenger Airlines, published in March 2009 and available on www.moodys.com
in the Rating Methodologies sub-directory under the Research &
Ratings tab. Other methodologies and factors that may have been
considered in the process of rating Delta can also be found in the Rating
Methodologies sub-directory on Moody's website.
The last rating action was on June 3, 2010 when Moody's affirmed
its ratings of Delta and changed the ratings outlook to stable from negative.
..Issuer: Delta Air Lines, Inc.
....Senior Secured Enhanced Equipment Trust,
Delta Air Lines, Inc., headquartered in Atlanta,
Georgia, is the world's largest airline, providing scheduled
air transportation for passengers and cargo throughout the U.S.
and around the world.
Michael J. Mulvaney
Corporate Finance Group
Moody's Investors Service
Vice President - Senior Analyst
Corporate Finance Group
Moody's Investors Service
Moody's assigns Baa2 rating to Delta Air Lines 2010-1A EETC
No Related Data.
© 2018 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved. CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. AND ITS RATINGS AFFILIATES (“MIS”) ARE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MOODY’S PUBLICATIONS MAY INCLUDE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. MOODY’S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL, FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS AND MOODY’S OPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY’S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY’S ANALYTICS, INC. CREDIT RATINGS AND MOODY’S PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. NEITHER CREDIT RATINGS NOR MOODY’S PUBLICATIONS COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS AND PUBLISHES MOODY’S PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.
MOODY’S CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY’S CREDIT RATINGS OR MOODY’S PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER.
ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY’S PRIOR WRITTEN CONSENT.
CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.
All information contained herein is obtained by MOODY’S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided “AS IS” without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY’S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing the Moody’s publications.
To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY’S.
To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.
NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY SUCH RATING OR OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY’S IN ANY FORM OR MANNER WHATSOEVER.
Moody’s Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody’s Corporation (“MCO”), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody’s Investors Service, Inc. have, prior to assignment of any rating, agreed to pay to Moody’s Investors Service, Inc. for appraisal and rating services rendered by it fees ranging from $1,500 to approximately $2,500,000. MCO and MIS also maintain policies and procedures to address the independence of MIS’s ratings and rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold ratings from MIS and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com
under the heading “Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy.”
Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY’S affiliate, Moody’s Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to “wholesale clients” within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY’S that you are, or are accessing the document as a representative of, a “wholesale client” and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to “retail clients” within the meaning of section 761G of the Corporations Act 2001. MOODY’S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors. It would be reckless and inappropriate for retail investors to use MOODY’S credit ratings or publications when making an investment decision. If in doubt you should contact your financial or other professional adviser.
Additional terms for Japan only: Moody's Japan K.K. (“MJKK”) is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody’s Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody’s SF Japan K.K. (“MSFJ”) is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization (“NRSRO”). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.
MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any rating, agreed to pay to MJKK or MSFJ (as applicable) for appraisal and rating services rendered by it fees ranging from JPY200,000 to approximately JPY350,000,000.
MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.