Moody’s changes Qantas’ outlook from negative to stable
The credit rating agency Moody’s Investors Service informed Thursday that it changed the outlook on all ratings of the Australian airline Qantas from “negative” to “stable” and confirmed its long-term ratings.
Moody’s explained in its statement that “the stable outlook reflects the rating agency’s expectation that Qantas’ leverage will return to and remain within its established rating range,” EFE reported.
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Moody’s affirmed Qantas’ Baa2 (the ninth-highest investment grade) issuer ratings on its senior unsecured and senior unsecured bank credit facility-backed debt, as well as its Baa2 senior unsecured (P)rating on its medium-term note (MTN) program.
The agency believes that “Qantas is well positioned to restore its credit profile over the next 12-18 months, given that more than 95% of Australians over the age of 16 are fully vaccinated, all domestic borders are open and international borders continue to open,” according to its statement.
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The agency remarked that it expects that by fiscal 2023, which ends June 30 of that year, the airline’s net debt will return to below its 2.5x rating threshold and its gross debt will return to below its 3x threshold.
Moody’s indicated, among other financial data, that the Australian airline’s available liquidity as of December 31 included cash of A$2.7 billion (US$2.01 billion).
Moody’s also indicated that Qantas has A$1.6 billion (US$1.192 billion) in undrawn committed facilities.
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Plataforma Informativa de Aviación Comercial líder en América Latina.