Heathrow Finance credit rating update

25 June 2020

Heathrow Finance credit rating update

Credit rating agency Moody's affirmed Heathrow Finance plc's Ba3 debt rating. Moody's recognised the resilience of the airport with key financial metrics expected to return to stronger levels over the next two to three years. Negative outlook remains unchanged reflecting traffic volatility generated by COVID19 pandemic.

Heathrow's financial position remains robust with £3.0bn of cash and committed facilities as at 30 April 2020. The affirmation reflects Heathrow's role as a key infrastructure provider, the potential for a strong recovery, the good liquidity profile and management's actions to support and restore the financial profile of the airport in the medium term.

Heathrow Chief Financial Officer Javier Echave said:  

"Prudent management and investment in the airport over the past decade put Heathrow in a robust financial position - which Moody's has recognised. We continue taking decisive steps to protect Heathrow's financial resilience. In addition to our strong liquidity position, we are reducing our operating costs by at least £300 million, cutting our capital expenditure by over £650 million and adapting our operating model to help us keep Britain's hub airport open safely and protect vital supply lines throughout this crisis. We will continue working to maintain investor confidence." 

Heathrow published its latest 2020 and 2021 forecasts in its June Investor Report and will report H1-2020 results in late July 2020.

For investor enquiries please contact Christelle Lubin on +44 7764 805 761

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