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Equipment Trust Certificate
(redirected from Enhanced Equipment Trust Certificate)

   Also found in: Acronyms, Wikipedia 0.01 sec.
Equipment Trust Certificate
A certificate entitling the holder to the revenue from the lease of an asset. In an equipment trust, the trust owns the asset and leases the asset to a company (which usually set up the trust). Certificate holders receive lease payments until the certificates mature, at which point ownership of the asset is transferred to the company leasing it. Rail and airline companies use equipment trust certificates in order to finance the purchase of trains and planes.

equipment trust certificate
An intermediate- to long-term security that pays a fixed return based on payments received from the lease of equipment. These certificates are frequently used by railroads and airlines to finance rolling stock and aircraft, respectively.


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The company's latest focus is to see if aircraft financing can be included in the Islamic Sukuk, or bond, market, based on a recent transaction in which an Islamic financier securitised a mortgage portfolio in the Sukuk market in tranches, similar to how aircraft investments are structured in the US using a security instrument known as the Enhanced Equipment Trust Certificate (EETC).
CHICAGO -- Fitch Ratings has updated its surveillance methodology for enhanced equipment trust certificates (EETCs) to reflect the corporate - structured hybrid nature of these transactions.
CHICAGO -- Fitch Ratings has taken various rating actions on the following classes of Delta Air Lines (Delta) Enhanced Equipment Trust Certificate (EETC) transactions as detailed below: Delta Air Lines Pass Through Certificates, series 2000-1: --Class A1 affirmed at 'BBB-' and assigned a Negative Rating Outlook; --Class A2 downgraded to 'BB' from 'BBB-' and assigned a Negative Rating Outlook; --Class B downgraded to 'B' from 'BB-' and assigned a Negative Rating Outlook.
 
 
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