06:52 AM EST, 11/25/2020 (MT Newswires) -- Moody's Investors Service overnight Tuesday downgraded Air Canada's Corporate Family Rating (CFR) to Ba3 from Ba2, Probability of Default rating to Ba3-PD from Ba2-PD, senior unsecured notes rating to B2 from Ba3. Moody's has affirmed the first lien senior secured rating at Ba1. The Speculative Grade Liquidity rating remains unchanged at SGL-3.

Moody's also downgraded its ratings on Air Canada Series 2015-2 Pass Through Trusts, Air Canada Series 2017-1 Pass Through Trusts, and Air Canada Series 2020-1 Pass Through Trusts by one notch, in line with the one notch downgrade of the corporate family rating. Moody's affirmed its ratings on Air Canada Series 2013-1 Pass.

The ratings outlook remains negative.

"Today's downgrade of Air Canada's ratings reflects our expectation of high leverage and that the return to 2019 air travel volume is likely to extend through 2023," said Jamie Koutsoukis, Moody's Vice President, Senior Analyst.

NOTE (from LB1): The rating is already B+ by S&P (august 2020), one notch under the  Ba3 of Moody's