Moody's rates Allegiant notes Ba3

Moody's Investors Service said it assigned Allegiant Travel Co. corporate family and probability-of-default ratings of Ba3 and a speculative grade liquidity rating of SGL-2.

The outlook is stable.

Moody's also assigned a Ba3 rating to the planned issuance of $250 million of senior unsecured notes due 2017 announced on May 18.

Proceeds will be used to pay for the balance of the purchase price and induction costs for the MD 80 and Boeing 757 aircraft under contract and to repayment of some or all of the about $37 million of aircraft mortgage debt outstanding at March 31 with the balance being held for general corporate purposes.

"The Ba3 corporate family rating considers Allegiant's differentiated business model that leads to lower unit costs and higher operating margins relative to those of other rated airlines, supports strong market share on its routes that focus on small origination cities and drives down the need for capital," Moody's analyst Jonathan Root said in a statement.

© 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.