Fitch cuts WestJet

Fitch Ratings said it downgraded WestJet Ltd.’s long-term issuer default rating to B from B+.

In addition, Fitch downgraded WestJet's senior secured term loan and revolver ratings to BB-/RR2 from BB+.

“The downgrade is driven by Fitch's updated base case, which shows a slower than expected rebound in air traffic driven by health concerns and government restrictions on travel. Partly offsetting the drop in travel is the company's material reduction in workforce and efforts to date to raise liquidity,” Fitch said in a press release.

Fitch also assigned a BB-/RR2 rating to the revolving credit facility under the WestJet Airlines, Ltd., reflecting its position as a co-borrower.

The outlook is negative.

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