23rd Feb 2021 14:21
(Alliance News) - Moody's Investors Service on Tuesday has assigned a Baa3 rating to the proposed backed senior unsecured notes to be issued by easyJet FinCo BV, a subsidiary of easyJet PLC.
The company's existing Baa3 long-term issuer rating and the existing Baa3 ratings of the backed senior unsecured notes remain unchanged, Moody's said. The outlook on all ratings is negative.
The ratings agency said the current very low levels of flying activity, extensive travel restrictions and uncertainties over the timing and pace of a recovery in European air travel continue to weigh heavily on easyJet's debt ratings. The timing of a recovery in 2021 is highly uncertain and the key tourist seasons continue to be at risk, Moody's highlighted.
On the other hand, Moody's said, easyJet remains relatively strongly placed to benefit from a recovery in air travel given its scale, broad network, low-cost positioning, strong positions at primary airports, cost advantages over legacy carrier competitors, and focus on short-haul leisure travel.
easyJet shares rallied Tuesday on a rush of flight bookings after UK Prime Minister Boris Johnson on Monday set out plans to ease England's virus lockdown shortly.
Bookings more than quadrupled by late Monday compared with a week earlier, easyJet said after Johnson's announcement.
easyJet was up 7.7% to 961.20 pence in London on Tuesday afternoon.
By Evelina Grecenko; [email protected]
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