S&P cuts Spirit Airlines

S&P said it downgraded Spirit Airlines Inc.’s issuer credit rating to B+ from BB-. At the same time, S&P lowered the issue-level ratings on each of the company's enhanced equipment trust certificates by one notch and placed all its ratings on Spirit on CreditWatch with negative implications.

“We believe Spirit's capacity reductions and low-cost structure will be insufficient to completely offset the decline in its travel demand,” said S&P in a press release.

The agency expects to resolve the CreditWatch placement when it has more information regarding the effect of the coronavirus on Spirit's credit metrics and liquidity.

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