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

CHICAGO--()--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

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Contacts

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