Fitch Affirms AABS Limited's Ratings

Fitch Ratings has affirmed the ratings of AABS Limited loans as follows:

--Series A Loans at 'Asf'; Outlook Stable;

--Series B Loans at 'BBBsf'; Outlook Stable.

KEY RATING DRIVERS

The affirmation of the loan ratings reflects the transactions' consistent performance to date which has been within Fitch's initial expectations. The Stable Outlook reflects Fitch's expectation that cash flow from the portfolio of aircraft will continue to be adequate to withstand stresses commensurate with the current ratings. Initial key rating drivers and the rating sensitivities are further described in Fitch's New Issue Report for this transaction dated Jan. 16, 2013.

RATING SENSITIVITIES

Because of the correlation between global economic conditions and the airline industry, the ratings may be affected by the strength of the macro-environment over the remaining term of this transaction. Global economic conditions that are inconsistent with Fitch's expectations and stress parameters could lead to negative rating actions. In the initial rating analysis, Fitch found the transaction to have minimal sensitivity to the timing or severity of assumed recessions.

Fitch found that greater default probability of the leases would have a material impact on the ratings. In addition, Fitch found that the timing or degree of technological advancement in the commercial aviation space, and the effect these changes would have on lease rates and utilization would have a moderate impact on the rating. Scenarios testing the sensitivity of potential poor servicing and low utilization were found to have minimal impacts on the rating.

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

Applicable Criteria and Related Research:

-'Global Structured Finance Rating Criteria' dated May 24, 2013

-'Global Rating Criteria for Aircraft Operating Lease ABS' dated April 12, 2013

-'AABS Limited Asset Backed Secured Term Loan' dated January 16, 2013

Applicable Criteria and Related Research:

Global Rating Criteria for Aircraft Operating Lease ABS

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=704628

Global Structured Finance Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=708661

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=813390

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Fitch Ratings
Primary Analyst
Thomas Kaiser, CPA, [phone]
Analyst
Fitch Ratings, Inc.
70 W. Madison Street
Chicago, IL 60602
or
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Peter Manofsky, [phone]
Director
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Du Trieu, [phone]
Senior Director
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