S&P pulls WestJet from watch

S&P said it affirmed its ratings for WestJet Airlines Ltd., removed them CreditWatch with negative implications and assigned a negative outlook. S&P placed the ratings, including the B- issuer rating, on watch on March 17.

“The affirmation and removal from CreditWatch primarily reflect WestJet's better liquidity position than we had expected in May 2020. WestJet incurred a smaller FOCF deficit in the second quarter than we had expected, in part due to lower cash refunds for canceled flights and lower capital expenditures (capex) when compared with our previous forecast,” S&P said in a press release.

The outlook reflects the risk the pandemic could become more severe leading to a slower-than-expected recovery in the airline’s results, the agency said.

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