Moody's trims Southwest Airlines

Moody's Investors Service said it downgraded its senior unsecured debt ratings of Southwest Airlines Co. to Baa1 from A3 and the ratings on its one enhanced equipment trust certificate financing, Series 2007-1, class A to A2 from A1, and class B to Baa2 from Baa1. All ratings are on review for further downgrade.

The rapid and widening spread of the coronavirus outbreak, the deteriorating global economic outlook, falling oil prices and asset price declines are creating a severe and extensive credit shock across many sectors, regions and markets, the agency said.

Southwest remains vulnerable to shifts in market sentiment in these unprecedented operating conditions and the company remains vulnerable to the outbreak continuing to spread.

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