Heathrow Funding & Heathrow Finance outlook update

23 April 2020

Heathrow Funding Ltd and Heathrow Finance plc credit outlook update

Credit rating agency Fitch revised the outlook on Heathrow Funding Limited's Class A and B debt to negative from stable reflecting the uncertainty surrounding Covid-19. Fitch has also revised the outlook on Heathrow Finance plc's outstanding notes to negative. Credit ratings are unchanged with Fitch retaining confidence that Heathrow will be able to restore stronger credit metrics in future.

Heathrow's financial position remains robust with £3.2bn of cash and committed facilities available to the business. Management continues ongoing work to reduce the airport's cost base to safeguard the financial resilience of the business. 

Fitch's update reflects the agency's revised traffic outlook for 2020 followed by a gradual recovery between 2021 and 2024. The agency kept Heathrow's long-term credit rating unchanged as it continues to expect that Heathrow's financial flexibility and ability to reduce its cost base will allow the airport to restore stronger credit metrics after a severe coronavirus-related volume shock in 2020.

Heathrow Chief Financial Officer Javier Echave said:  

"The spread of COVID-19 is having a tragic human cost and significant effects across the global aviation industry. Prudent management and investment in the airport over the past decade puts Heathrow in a strong financial position - which Fitch have recognised with continued confidence in our future position. We've taken steps to reduce our cost base and reorganise our operation which will help us keep Britain's hub airport operating and protect vital supply lines throughout this crisis. We will continue working to maintain investor confidence." 

Further updates will be provided as part of our Q1 results scheduled to be published on 1st May 2020. 

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

For media enquiries please contact Weston Macklem on +44 7525 825 516