Last week Moody's Investors Service lowered its ratings on sub classes of two GE Capital aircraft lease-backed deals, which have been experiencing cashflow deterioration resulting from an industry downturn associated with Sept. 11 and the economic slowdown.

However, though a few transactions are still under review, Senior Credit Officer Nicolas Weill believes the worst of the lease restructuring, where borrowers renegotiate their lease payments based on the lower demand for air travel and the resulting overcapacity in the industry, has already taken place.

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