Fitch Ratings has downgraded Spirit Airlines' 2017-1 class AA enhanced equipment trust certificates (EETCs) to 'AA-' from 'AA'. The certificates remain on Rating Watch Negative. Fitch has affirmed Spirit's 2017-1 class A and B certificates and Spirit's 2015-1 class A and B certificates.
Fitch states that it considers the affirmation factor for the 2017-1 and 2015-1 pools to be high. “In our view, the likelihood that Spirit would ultimately affirm these aircraft in a scenario where the airline filed for bankruptcy is supported by the relatively high percentage of the fleet contained in these pools. The Spirit 2015-1 pool contains 15 aircraft, which makes up around 10% of the company's fleet. The 2017-1 pool contains 12 aircraft, or around 8% of Spirit's fleet.
“The two pools also contain more than half of Spirit's A321s. The A321's larger size allows Spirit to add capacity on denser routes without necessarily adding additional frequencies. The larger gauge of the A321 also leads to a lower cost per available seat mile compared to its smaller cousins, which is key to Spirit's low-cost strategy.”