March 20, 2020 / 5:45 PM / 14 days ago

BRIEF-Moody's Says Airlines' Credit Quality Weakens As Coronavirus Causes Unprecedented Stress

March 20 (Reuters) - MOODY’S-

* MOODY’S SAYS AIRLINES’ CREDIT QUALITY WEAKENS AS CORONAVIRUS CAUSES UNPRECEDENTED STRESS

* MOODY’S SAYS AIRLINES’ LIQUIDITY PRESSURES TO BECOME MORE ACUTE IF MARKET ACCESS COMPROMISED, PARTICULARLY IF CORONAVIRUS CRISIS RUNS BEYOND JUNE 2020

* MOODY’S SAYS AS CORONAVIRUS PANDEMIC WIDENS AND DEEPENS, PASSENGER AIRLINE SECTOR IS ONE OF MOST ADVERSELY AFFECTED INDUSTRIES

* MOODY’S SAYS WHILE WEAKER AIRLINES MAY BE PUSHED TO DEFAULT, DO NOT EXPECT EVEN THE STRONGEST AIRLINE COMPANIES TO EMERGE UNSCATHED DUE TO CORONAVIRUS

* MOODY’S SAYS BELIEVE GLOBAL AIRLINES INDUSTRY CAPACITY WILL BE CUT BY 40% - 60% OR MORE FOR Q2 2020 & IN SOME INSTANCES, MORE THAN 75% VERSUS Q2 2019

* MOODY’S - PRELIMINARY ASSESSMENT IS THAT LARGE AIRLINES HAVE ADEQUATE LIQUIDITY TO MANAGE THROUGH FAIRLY SIGNIFICANT SHORT-TERM DISRUPTION THROUGH JUNE

* MOODY’S SAYS WHILE LOWER OIL PRICES WILL MITIGATE SOME DOWNSIDE AND BENEFIT UNHEDGED AIRLINES, FUEL HEDGING WILL BE A BURDEN FOR OTHERS

* MOODY’S SAYS IT NOTES POTENTIAL FOR SOME MODEST-SIZED AND/OR LESS LIQUID AIRLINES TO COLLAPSE WITHIN SHORT PERIOD WITHOUT ADDITIONAL SUPPORT Source text for Eikon:

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below