Fitch rates China Southern Airlines

Fitch Ratings said it assigned China Southern Airlines Co. Ltd. BB- senior unsecured foreign currency and local currency ratings.

The outlook is stable.

Fitch said the ratings reflect China Southern's stable profitability and strong cash generation capability relative to its domestic peers. They also reflect the opportunities generated by China's booming air travel market, which is balanced by challenges arising from high domestic jet fuel prices..

Key concerns for the airline, Fitch noted, include declining yields caused by increased domestic competition, limited cost-cutting opportunities given the challenging cost environment for the airline sector and the constraint on free cash flow generation driven by sizeable future capex needs for aircraft additions.

© 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.