Aircraft market values have not recovered post-pandemic, according to Fitch Ratings. Also, improvements will drag on due to supply and demand imbalances. The wild card? Next generation replacement technology, which relegates older airline models to the hangar.
Data center securitizations issued in recent years carry elevated leverage that is inconsistent with the A rating they received from rating services other than Fitch.
The SEC’s Investor Advisory Committee wants increased regulatory disclosures in the sector. However, an SEC commissioner questioned the utility of the proposal.
For years, industry analysts raised concerns about the quality of CLOs, warning of poor performance. While issues from the coronavirus prompted some problems, AAA-rated tranches of CLOs have held strong.
The property assessed clean energy ABS issued by Renovate America are “largely insulated” from the company’s financial troubles given its limited involvement in the deals post-issuance, according to KBRA.
Fitch has downgraded 37% of the airline ABS it rates. Kroll and S&P also recently conducted sweeping downgrades. The rating services said air travel isn’t expected to recover until 2023 at the earliest.
Despite plunging volume in rated MBS and ABS during the second quarter, some ratings services managed to increase market share. (Includes two data charts.)
ABS tied to Bojangles, powersports equipment and airline mileage programs recently hit the market. Meanwhile, a whole-business ABS from Planet Fitness was downgraded.
The rating service its stepping away from rating new commercial MBS backed by single-borrower hotel loans due to uncertainty prompted by the coronavirus. Only one such deal has been issued since April.