Moody’s boosts Grupo Aeromexico

Moody's Investors Service said it raised its ratings on Grupo Aeromexico, SAPI de CV and its subsidiaries and its $662.5 million of backed senior secured global notes due 2027 to B2 from B3. At the same time, Moody's changed the outlook to positive from stable.

“The upgrade of Aeromexico's ratings to B2 from B3 reflects the company's robust operating and financial performance in 2023, exceeding initial forecasts and Moody's expectation that this trend will continue. Aeromexico's solid operation translated into a 4.3x leverage (Moody's adjusted gross debt/EBITDA) in 2022. This upward trend persisted in 2023; Moody's projects a year-end leverage below 3x,” Moody’s said in a press release.

The agency noted Aeromexico's stronger-than-expected operating performance. For the full year ended 2022, EBIT margin of 10.5% considerably beat the 5% the company had projected, with robust demand and higher fleet efficiency offsetting its high fuel costs.

Moody’s said it conservatively expects EBIT margin staying above 10% through 2024, beating its original expectation of 8.5%.

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