On June 29, 2006, Standard&Poor's Ratings Services lowered its rating on Continental Airlines Inc.'s (B/Negative/B-3) series 2004-ERJ1 class A and 2005-ERJ1 class A pass-through certificates to 'BB+' from 'BBB-'. The downgrades follow a decision by ExpressJet Airlines Inc. (not rated) to redeploy 69 regional jets that it currently operates on behalf of Continental (and which includes certain planes that collateralize the pass-through certificates) to other uses. Although Continental remains primarily responsible for lease payments that service the certificates, and will continue to sub-lease them to ExpressJet, Continental's incentive to affirm the leases in any future bankruptcy could be less than if the planes were still used in Continental Express (regional service) flights. The rating action does not reflect
