Moody’s cuts Airports Co.

Moody’s Investors Service said it downgraded to Ba2 from Ba1 the corporate family rating of Airports Co. South Africa Ltd. Moody’s also downgraded to Aa3.za from Aa2.za the national scale rating of ACSA.

Moody’s changed the outlook to negative from ratings under review. The downgrade and outlook revision conclude the review process started on March 31, the agency said.

“The rating downgrade reflects ACSA’s reduced cash flows that will increase the company’s debt burden and result in a material weakening of credit metrics, with uncertain recovery prospects in the context of ACSA’s exposure to a very weak carrier base and weak economic environment,” Moody’s said in a press release.

The outlook reflects the continued uncertainty for traffic, with risks of extended disruption to travel leading to weaker performance or liquidity, the agency said.

© 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.