Moody’s trims WestJet Airlines

Moody's Investors Service said it downgraded WestJet Airlines Ltd. corporate family rating to B3 from Ba3, probability of default rating to B3-PD from Ba3-PD and senior secured rating to B2 from Ba2.

The outlook is negative.

“The spread of the coronavirus outbreak, the deteriorating global economic outlook, low oil prices, and asset price declines are sustaining a severe and extensive credit shock across many sectors, regions and markets. The combined credit effects of these developments are unprecedented,” the agency said in a news release.

“The passenger airline industry is one of the sectors most significantly affected by the shock given its exposure to travel restrictions and sensitivity to consumer demand and sentiment.”

The agency said the downgrade of WestJet's ratings reflects the breadth and severity of the coronavirus shock and the uncertain trend in passenger demand that will extend well into 2021.

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