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Rating Enhancement For Airline Equipment Debt Aug 97 Product Image

Rating Enhancement For Airline Equipment Debt Aug 97

  • Published: August 1997
  • Standard & Poors

FEATURED COMPANIES

  • Alaska Airlines Inc.
  • American Airlines Inc.
  • Delta Air Lines Inc.
  • Northwest Airlines Inc.
  • Southwest Airlines Co.
  • United Air Lines Inc.
  • MORE

Abstract
Aircraft leases and secured debt that qualify for special protection under Section 1110 of the U.S. Bankruptcy Code can receive ratings above the corporate credit rating of the airline issuer. Section 1110 excludes certain types of leases and secured debt from the automatic stay of creditor claims and substitution of collateral sections of the Code. Creditors may repossess collateral if the debtor does not resume debt service or lease rentals and cure any past due amounts within 60 days of filing for bankruptcy. This provides a powerful incentive for continued payment under these obligations in bankruptcy. Standard&Poor's rating enhancement is based on: Section 1110's legal support for continuing payment of interest and principal (thus reducing default risk); Accelerated access to...

Companies mentioned in this report are:
- Alaska Airlines Inc.
- American Airlines Inc.
- United Airlines Inc.
- Delta Air Lines Inc.
- Northwest Airlines Inc.
- Southwest Airlines Co.
- United Air Lines Inc.
- US Airways Inc.
- America West Airlines Inc.

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international READ MORE >

- Alaska Airlines Inc.
- American Airlines Inc.
- United Airlines Inc.
- Delta Air Lines Inc.
- Northwest Airlines Inc.
- Southwest Airlines Co.
- United Air Lines Inc.
- US Airways Inc.
- America West Airlines Inc.

Note: Product cover images may vary from those shown

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