Fitch rates Virgin Australia B+

Fitch Ratings said it assigned a first-time long-term foreign-currency issuer default rating of B+ to Virgin Australia Holdings Ltd.

“VAH’s rating reflects its standalone credit profile (SCP) of b and a one-notch uplift on account of implied support from Singapore Airlines Ltd. (SIA, not rated) under our parent and subsidiary rating linkage methodology. VAH’s SCP reflects its position as the second-largest airline in the Australian domestic aviation market, and is supported by the carrier’s strong access to slots at peak times at slot-constrained capital city airports such as Sydney and Melbourne – where the ‘use it or lose it’ principal with respect to slots protects the incumbent airlines’ networks – and its expanding loyalty program,” Fitch said in a press release.

The outlook is stable.

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