S&P cuts Virgin Australia

S&P said it lowered its Virgin Australia Holdings Ltd. rating to B- from B+ and dropped the rating on the airline’s debt to CCC+ from B. Concurrently, the agency placed the ratings on CreditWatch with negative implications. Recovery ratings on the debt remain unchanged at 5.

“We lowered our ratings on Virgin Australia to reflect our view that rapidly deteriorating industry conditions are spreading from the international to the Australian domestic market. We now believe Australia's economy will grow at just 1.2% in 2020, which is the weakest economic outlook in 20 years,” said S&P in a press release.

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