Fitch rates Air Baltic B-, plans to rate bonds B

Fitch Ratings said it published Air Baltic Corp. AS' B- issuer default rating with a stable outlook.

The agency also assigned the company’s planned senior secured €300 million-equivalent bonds an expected long-term rating of B with a recovery rating of RR3.

The new senior secured bonds will refinance the company’s €200 million bonds due in July.

Fitch said the ratings reflect the company’s weak financial profile, due to high lease debt driven by fleet growth, and limited financial flexibility.

Rating strengths are its market position as the leading network carrier in the Baltic region, new-generation and fuel-efficient fleet and business diversification through wet leasing under-utilized aircraft, Fitch said.

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