Moody’s stabilizes Spirit Airlines view

Moody’s Investors Service said it changed its outlook for Spirit Airlines, Inc. to stable from positive and affirmed its B1 ratings. The agency also affirmed the Ba2 senior secured rating assigned to Spirit IP Cayman Ltd.'s 8% senior notes secured by its loyalty program and trimmed the speculative grade liquidity rating to SGL-2 from SGL-1.

"Changing the outlook to stable reflects the delays in restoring operating metrics towards pre-pandemic levels that Spirit will realize because of higher costs and constraints in the commercial aviation ecosystem," said, Jonathan Root, Moody's lead analyst, in a press release.

The lower SGL rating mirrors lower free cash flow due to operating challenges and higher fuel costs, the agency said.

Moody's said it now sees negative free cash flow in 2022 and then turning positive in 2023.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.