Fitch cuts Spirit Airlines

Fitch Ratings said it downgraded Spirit Airlines Inc.'s long-term issuer default rating to B- from B. The agency also lowered Spirit IP Cayman Ltd.'s and Spirit Loyalty Cayman Ltd.'s senior secured debt to BB-/RR1 from BB/RR1 and Spirit Airlines Pass Through Trust Certificates series 2015-1 and 2017-1 class B certificates to BB from BB+ and 2017-1 class AA certificates to A+ from AA- following the downgrade of the IDR. Finally, Fitch affirmed the 2017-1 and 2015-1 class A certificates at A.

“The downgrade reflects Fitch's updated rating case forecasting structurally weaker operating profits. Credit metrics affected include EBITDAR fixed-charged coverage sustained below 1.5x, inconsistent with a B rating,” the agency said in a press release.

Additionally, Fitch warned, “Fitch believes Spirit needs to articulate a near-term plan to preserve liquidity. The company must also address its September 2025 refinancing risk, and improve profitability to avoid further negative rating action.”

The outlook is negative.

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