Fitch: Engine Sale Unlikely to Adversely Impact Ratings for Blade Engine Securitization LTD

Thu Feb 14, 2013 12:23pm EST

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CHICAGO--(Business Wire)--
Fitch Ratings has been notified that Blade Engine Securitization LTD (Blade)
intends to sell a JT8D-219 engine out of the trust to a third party. The engine
has not been leased in over a year as demand for the engine is weak. While the
proposed sale price is below the note target price as defined by the transaction
documents, Fitch does not anticipate that the engine sale, in and of itself,
would adversely impact the trust's ratings. 

However, all notes currently have a Negative Rating Outlook, indicating that
downward rating movements are likely over a one to two year period. As stated in
an Aug. 23, 2012 press release following the affirmation of all outstanding
notes, the Negative Outlook reflects Fitch's concerns regarding the long-term
cashflow generation capabilities of the trust. 

Fitch currently rates the trust as follows: 

Blade Engine Securitization LTD 

--Class A-1 notes 'Asf'; Outlook Negative; 

--Class A-2 notes 'Asf'; Outlook Negative; 

--Class B-1 notes 'BBBsf'; Outlook Negative. 

Additional information is available at 'www.fitchratings.com'. 

Applicable Criteria and Related Research: 

--'Global Structured Finance Rating Criteria' (June 6, 2012); 

--'Global Rating Criteria for Aircraft Operating Lease ABS' (April 17, 2012). 

Applicable Criteria and Related Research: 

Global Structured Finance Rating Criteria 

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=679923

Global Rating Criteria for Aircraft Operating Lease ABS 

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=675090

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS.
PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK:
HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING
DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S
PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND
METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF
CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE
AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF
CONDUCT' SECTION OF THIS SITE.

Fitch Ratings
Primary Analyst
Peter Manofsky, +1-312-368-2068
Director
Fitch Ratings, Inc.
70 W. Madison Street
Chicago, IL 60602
or
Committee Chairperson
Du Trieu, +1-312-368-2091
Senior Director
or
Media Relations:
Sandro Scenga, New York, +1 212-908-0278
Email: sandro.scenga@fitchratings.com

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