Fitch slashes Western Global Airlines

Fitch Ratings said it downgraded Western Global Airlines, Inc.'s senior unsecured notes to CC/RR5 from B/RR3 and its long-term issuer default rating to CCC- from B-. The agency also removed the IDR from rating watch negative.

“The downgrade is driven by further increases in liquidity and refinance risks given low aircraft activity with large parts of WGA's fleet either stored or parked and limited flights to and from Asia. The downgrade also reflects the continued deterioration of capital markets access with WGA's unsecured bonds currently trading at distressed levels,” the agency said in a press release.

Fitch also noted WGA’s revolver is fully drawn straining its liquidity.

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