United Airlines Inc.'s Secured $1 Billion Notes Due 2023 And $1.25 Billion Notes Due 2025 Rated 'BB+', On Watch Negative

NEW YORK (S&P Global Ratings) May 6, 2020--S&P Global Ratings today assigned its 'BB+' issue-level rating to United Airlines Inc.'s proposed $1 billion secured notes due 2023 and $1.25 billion secured notes due 2025 and placed the ratings on CreditWatch with negative implications. The notes, which are guaranteed by parent United Airlines Holdings Inc., are secured by a pool of 360 aircraft. The notes benefit from Section 1110 of the U.S. Bankruptcy Code, which provides special protections to aircraft creditors. Because of this, we apply our criteria for rating airline equipment trust certificates (these are not enhanced equipment trust certificates [EETCs] but the legal protections are the same). Based on appraised values, narrowbody aircraft (including Boeing's 737 and 757 aircraft

...May 6, 2020 NEW YORK (S&P Global Ratings) May 6, 2020--S&P Global Ratings today assigned its '##+' issue-level rating to United Airlines Inc.'s proposed $1 billion secured notes due 2023 and $1.25 billion secured notes due 2025 and placed the ratings on CreditWatch with negative implications. The notes, which are guaranteed by parent United Airlines Holdings Inc., are secured by a pool of 360 aircraft. The notes benefit from Section 1110 of the U.S. Bankruptcy Code, which provides special protections to aircraft creditors. Because of this, we apply our criteria for rating airline equipment trust certificates (these are not enhanced equipment trust certificates [EETCs] but the legal protections are the same). Based on appraised values, narrowbody aircraft (including Boeing's 737 and 757 aircraft families and Airbus' A320 family) comprise about 75% of the collateral value and widebody aircraft (including Boeing's 767 and 777 families) account for the remaining 25%. The secured notes have...

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