Moody's prunes Hawaiian Holdings

Moody's Investors Service said it downgraded Hawaiian Holdings, Inc.’s ratings, including the corporate family rating to Caa1 from B2 and probability of default rating to Caa1-PD from B2-PD. The agency also lowered the rating on subsidiary Hawaiian Airlines, Inc.'s series 2013-1 class A enhanced equipment trust certificates to B3 from B1 and the rating assigned to HawaiianMiles Loyalty, Ltd.'s $1.2 billion of senior notes secured by the company's HawaiianMiles loyalty program and its brand intellectual property to B2 from Ba3. The speculative grade liquidity rating was lowered to SGL-3 from SGL-2.

“Based on Hawaiian's most recent guidance from its Q3 earnings call, Moody's now forecasts an operating loss of about $300 million and negative operating cash flow of about $50 million in 2023. Moody's projects that deficits will be sustained near these levels in 2024 because the headwinds buffeting the company's revenue performance are unlikely to meaningfully subside,” the agency said in a press release.

Moody's said it lowered the speculative grade liquidity rating to SGL-3 because of the $300 million drop in the cash cushion it estimates for 2024.

The outlook remains negative.

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