Post by
thinkyourmoney on Oct 10, 2023 2:54pm
Moody's upgrade
From a previous post buried by John Tory.
This one more step to investment grade rating. This is very positive news.
Moody’s upgraded AC’s corporate family rating (CFR) to Ba2 from Ba3 while maintaining its stable outlook.
The rating agency also upgraded the company’s probability of default rating to Rail Volumes End Q3 On A More Positive Note -- Transportation & Aerospace Weekly - October 9, 2023 10 Ba2-PD from Ba3-PD, senior secured notes rating to Ba1 from Ba2, senior secured term loan B rating to Ba1 from Ba2, and speculative grade liquidity rating to SGL-1 from SGL-2. Moody’s noted that the CFR upgrade reflects its expectation that AC’s credit metrics will continue to improve over the next 12 to 18 months, supported by solid demand for air travel and debt reduction. Moody’s expects demand for air travel, mainly in the U.S. transborder and international routes, to continue to improve in 2024. A solid airfare environment will also allow for AC to continue to pass on cost inflation, resulting in an operating profit of ~$2B in 2023 and 2024. Additionally, Moody’s is expecting that AC will run its system capacity as ~89% and ~95% of the 2019 level in 2023 and 2024, respectively.
Comment by
JohnTory on Oct 10, 2023 3:00pm
Account is malicious and spreading misinformation. Treat account with utmost caution. Amen