Fitch affirms Airplanes Pass Through Trust

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Fitch Ratings has affirmed the ratings of four classes of Airplanes Pass Through Trust to "Csf".

The affirmation of A-9, B, C and D classes reflects Fitch's view that default is considered inevitable, says the ratings agency.

The pool of aircraft consists predominately of aged, lower-tier aircraft, which Fitch believes will be unable to generate sufficient cash flow to repay the notes in full.

The recovery estimate of 10% reflects Fitch's expectation of principal allocation relative to the current-class A-9 note balance under a base scenario. However, a positive outcome of ongoing litigation may result in higher recoveries.

The class B, C, and D recovery estimates are 0% as no principal is expected to be paid, with any collections being applied only to the senior note.

Furthermore, large interest shortfalls continue to grow across these three classes.

In March 1996, the Airplanes Pass Through Trust issued nearly $4.05 billion in notes with GPA Group acting as the seller, cash manager and administrative agent. GECAS acted as the servicer in the transaction.

At the time, the notes were secured by 229 aircraft, including two Boeing 727-200s, 32 737-200s, 11 737-300s, 22 737-400s, 11 737-500s, one 747-200, three 757-200s, five 767s, six DC-8 freighters, 19 DC-9s, four DC-10s, three MD-11s, 26 MD-80s, six Airbus A300s. 12 A320s, 16 Fokker 100s, 10 Bombardier Dash-8s, six ATR 42s and three Fairchild Dornier Metro aircraft.

The proceeds from the issuance were used to refinance substantially all of GPA's secured debt obligations and to enhance the lessor’s ability to meet its remaining obligations.