Ryanair's debt to triple to E1.2b by next March - S&P

Ryanair’s debt will triple to E1.2b by the end of its current financial year as it remains under pressure due to the pandemic, according to global ratings agency Standard & Poor’s. It warned that the higher debt – compared to E434m at the end of last March - will leave the carrier’s credit metrics “under considerable pressure” in the next few quarters. However, the ratings agency reaffirmed its BBB rating on Ryanair Holdings, Ryanair DAC as well as the carrier group’s debt instruments, but with a negative outlook. S&P said that a Covid resurgence across Europe had resulted in renewed travel restrictions. “We now expect the recovery of air traffic to be slower than we previously foresaw,” noted analysts at the agency. They said that while vaccinations in the UK have begun, the widespread availability and acceptance of the Covid treatment, which it added is “critical” for restoring air travel demand, “may lag”. Standard & Poor’s pointed out that Ryanair has lowered its traffic assumptions and doesn’t expect to fly more than 38m passengers in the financial year that ends next March.<br/>