S&P trims Grupo Aeromexico

S&P said it lowered its ratings on Grupo Aeromexico SAB de CV and its debt to B- from B+ and removed the ratings from CreditWatch with negative implications. S&P placed the ratings on watch on March 20.

“As of this report's date, Aeromexico operates close to 10% of total capacity amid global lockdowns and economic malaise, mostly consisting of cargo services. Our current forecast assumes the industry's slower-than-expected resumption of operations, anemic air passenger traffic, and ongoing cash burn stemming from fixed costs. Therefore, we estimate a revenue drop of 53.8% and a barely breakeven EBITDA Ps. 900 million for Aeromexico in 2020, compared with our previous forecast of a 25% fall and Ps. 7.8 billion,” S&P said in a press release.

The outlook is negative.

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