Moody's downgrades Gogo

Moody's Investors Service said it downgraded Gogo Inc.'s corporate family rating to Caa1 from B3 and probability of default rating to Caa1-PD from B3-PD.

The agency also revised its outlook to negative.

Moody's also downgraded Gogo's speculative grade liquidity rating to SGL-3 from SGL-2 and affirmed its B2 senior secured rating.

The downgrades reflect the company's weakening credit metrics, operational difficulties and deteriorating liquidity, the agency said.

The downgrades also consider an expectation that Gogo's liquidity will weaken, Moody's said.

The ratings are based on the company's small scale, competitive operating environment, low margins and high leverage, the agency said.

Despite a strong performance from Gogo's business aviation segment in the first quarter of 2018, both of the company's two commercial aviation segments had weak operating performance, which diminished consolidated results, Moody's said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.