Moody's: SAS view negative

Moody's Investors Service said it changed the outlook on all ratings of both SAS AB and Scandinavian Airlines System Denmark-Norway-Sweden to negative from stable.

The ratings affected include SAS's B1 long-term senior implied rating and its B2 senior unsecured issuer rating.

The negative outlook is based on Moody's concern that the group's weaker-than-expected financial performance in the first half of the year might delay the anticipated recovery of credit metrics to levels commensurate with the current ratings. In addition, Moody's stated that there was low visibility of a return to sustainable free cash flow (before assets sales).

On the other hand Moody's acknowledges the progress in the execution of the restructuring program, which is due to be complete in 2005 (after having completed around 70% by the end of the second quarter of 2004 compared to the targeted 66%).

© 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.