WestJet sale prompts Moody's credit ratings review for possible downgrade

Onex Corp's purchase of WestJet Airlines has prompted Moody's to place 2 of the carrier's credit ratings under review for possible downgrade. The rating agency says it expects Onex to download some of the C$5b acquisition cost, which includes debt, onto WestJet when the deal closes. Such a move would increase the airline's adjusted leverage, though WestJet has no room in its current rating for any increase, Moody's said Tuesday. The all-cash deal, announced Monday, will see Onex take WestJet private after 20 years on the Toronto Stock Exchange. Onex MD Tawfiq Popatia said that the private equity firm plans to stick to WestJet's current trajectory, with no major strategy shifts in the works. WestJet CE Ed Sims said that going private would relieve the airline of the constant scrutiny that attends publicly held companies. <br/>