Moody's views WestJet's for downgrade

Moody's Investors Service said it placed the ratings of WestJet Airlines Ltd. under review for downgrade including its Ba3 corporate family rating, Ba3-PD probability of default rating and Ba2 senior secured rating.

The spread of the coronavirus outbreak, deteriorating global economic outlook, falling oil prices, and asset price declines are creating a severe and extensive credit shock across many sectors, regions and markets. The combined credit effects of these developments are unprecedented, the agency said.

The passenger airline sector has been one of the sectors most significantly affected by the shock given its exposure to travel restrictions and sensitivity to consumer demand and sentiment. The review reflects the effect on WestJet of the breadth and severity of the shock, and the broad deterioration in credit quality it has triggered, Moody's said.

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