We are updating our recommendations for certain asset-backed securities (ABS) denominated in Mexican pesos, issued by dedicated trusts of which the sponsoring parties are Mexico’s two largest low-cost airlines. Aeroenlaces Nacionales, S.A. de C.V. (VIVA) and Concesionaria Vuela Compañía de Aviación, S.A.B. de C.V. (Volaris) are the sponsors.
The structure remains resilient: Despite persistent weak macro and operational risks, both VIVA and Volaris’ ABS trusts continue to show solid Debt Service Coverage Ratio (DSCR) levels. VIVA’s ABS has demonstrated remarkable stability, with monthly ticket-sale collections rising and its DSCR climbing. In contrast, VOLARCB trusts saw more volatility during the Pratt & Whitney engine crisis, before gradually recovering. Capacity growth and ASM expansion support the resilience of DSCRs by boosting trust inflows.