Air Canada VS Us carriersThanks VEECEE for the Fitch rating but further in the text there are some interesting elements:
Comparaison with US carriers :
Air Canada's 'BB' is rating one notch above peers United Airlines and two notches above American Airlines. Air Canada's financial metrics compare favorably to American's, with gross leverage and fixed charge coverage ratios both better than American's. United's leverage metric is currently modestly below Air Canada's, however, this is offset by Fitch's expectations that United's FCF profile may be weaker than Air Canada's through our forecast period driven by United's ongoing capital spending program. Air Canada remains two notches below Delta Air Lines, which benefits from better leverage metrics, along with beneficial size and scale. Air Canada's market position in the duopolistic Canadian market is favorable to the heavily competitive U.S. market. RATING SENSITIVITIES
Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade
--Adjusted debt/EBITDAR trending below 3x;
--EBITDAR Margins sustained in the upper teens or better;
--Neutral to positive mid-cycle FCF.
Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade
--Adjusted debt/EBITDAR sustained above 4x;
--FFO fixed charge coverage sustained below 2.5x;
--EBITDAR margins declining to the low teens or below.