Printer Friendly

Moody's Affirms IAG Credit Rating At Baa3 With Stable Outlook.

LONDON (Alliance News) - Moody's Investors Service late Friday affirmed International Consolidated Airlines Group SA's Baa3 long-term issuer rating, keeping the outlook stable.

The credit ratings agency also affirmed British Airways PLC at Baa3, while raising the IAG division's outlook to positive from stable.

"IAG's Baa3 rating reflects its highly diverse and extensive global route network with strong market positions. The company's integrated operating model combined with its conservative financial policy, underpin the company's strong credit metrics, which are consistent with an investment grade rating," commented Martin Hallmark, a Moody's senior vice president and lead analyst for IAG.

Moody's said it raised the outlook for British Airways due to its "strong operating performance and credit metric improvement in 2018", which it said is "underpinned by its strong brand and market positions".

"There are growing industry headwinds in Europe, which could negatively pressure IAG's future earnings and cash flow, but Moody's believes IAG has sufficient operational and financial flexibility to weather a modest downturn," Hallmark said.

Moody's cited weaker pricing due to market overcapacity in Europe, higher fuel costs, and the risk of flight disruption due to air traffic control issues. The last of these affects British Airways less than its European peers, the ratings agency noted.

IAG also owns Aer Lingus in Ireland and Iberia and Vueling in Spain.

By Tom Waite; thomaslwaite@alliancenews.com

Copyright 2019 Alliance News Limited. All Rights Reserved.

COPYRIGHT 2019 NLA Access Media Limited
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2019 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:Alliance Newswire
Date:May 25, 2019
Words:232
Previous Article:US President Trump Arrives In Japan For State Visit, Golf And Sumo.
Next Article:Germany, France And Italy Vote As EU Elections Enter Final Day.
Topics:

Terms of use | Privacy policy | Copyright © 2020 Farlex, Inc. | Feedback | For webmasters