Delta cut to junk by Fitch as 35,000 workers take leave
Delta Air Lines was cut to junk at Fitch Ratings as part of a general downgrade of the US airline industry and its ability to service debt. The assessment adds urgency to the Trump administration’s desire to save the industry. Fitch lowered its rating on Delta’s debt to “BB+” from “BBB-” Friday and warned that another downgrade is possible as air travel suffers with the spread of the coronavirus. The airline does, however, have more financial flexibility than some rivals, Fitch said in an assessment of the industry. “Though Delta remains a stronger credit than its network peers, debt raised to sustain liquidity through the pandemic will drive credit metrics outside of a range supportive of investment-grade ratings at least through 2021 and likely into 2022,” Fitch said. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2020-04-13/sky/delta-cut-to-junk-by-fitch-as-35-000-workers-take-leave
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Delta cut to junk by Fitch as 35,000 workers take leave
Delta Air Lines was cut to junk at Fitch Ratings as part of a general downgrade of the US airline industry and its ability to service debt. The assessment adds urgency to the Trump administration’s desire to save the industry. Fitch lowered its rating on Delta’s debt to “BB+” from “BBB-” Friday and warned that another downgrade is possible as air travel suffers with the spread of the coronavirus. The airline does, however, have more financial flexibility than some rivals, Fitch said in an assessment of the industry. “Though Delta remains a stronger credit than its network peers, debt raised to sustain liquidity through the pandemic will drive credit metrics outside of a range supportive of investment-grade ratings at least through 2021 and likely into 2022,” Fitch said. <br/>
