Moody’s provides Baa3 to Delta Air

Moody's Investors Service said it assigned a Baa3 issuer rating to Delta Air Lines, Inc.

No other ratings of Delta, including its enhanced equipment trust certificates, are affected.

The outlook is stable.

Moody’s said the Baa3 long-term rating reflects its expectation of continued debt reduction, as well as ongoing stability in Delta's operations, which the agency believes will enable Delta to continue to handle the industry's volatility.

Delta has achieved significant financial deleveraging since 2009, and Moody's expects the airline to continue to benefit from comparatively low fuel cost and high load factor to produce meaningful cash flow.

The agency also expects that Delta will continue to effectively manage its network and operations, to sustain a competitive operating margin of around 20% with free cash flow that leads the industry. This should produce financial metrics that compare favorably to other companies also at the Baa3 rating level.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.