For Public Comments on Planned Methodology for EETC
JCR News
For Public Comments on Planned Methodology for EETC
Oct. 09, 2015
Japan Credit Rating Agency, Ltd. (JCR) plans newly to set up credit rating methodology for Enhanced Equipment Trust Certificate (EETC). JCR presents its draft as follows, for which it welcomes any comments/ opinions.
1. Overview
EETC is one of the aviation finance techniques. It is developed and being well-used in the United States for airline companies' aircraft procurement. Its use is lately started in airline carriers in other countries, and hence JCR considers the needs for credit rating of EETC are mounting. In the past, on June 1, 2015, it made public its rating methodology for aircraft finance. Considering EETC to have its particular schematics of creditor protection, JCR has determined to set forth a separate methodology to reflect its feature as such in the rating.
2. Next Steps
JCR wishes to invite public comments on the draft methodology. Comments are welcomed until October 22 at JCR website, by an E-mail form available under "Contact Us". JCR plans to finalize it as credit rating methodology in a month time. This is going to be a new rating methodology and hence JCR expects no existing rating to be reviewed accordingly.
