Moody’s downgrades Swissport

Moody’s Investors Service said it downgraded Swissport Group Sarl’s corporate family rating to Caa2 from B3 and probability of default rating to Caa2-PD from B3-PD.

Concurrently, Moody’s downgraded the rating on Swissport Financing Sarl’s term loan, senior secured notes and delayed draw loan facility to Caa1 from B2, and cut the senior unsecured notes rating to Caa3 from Caa2. Moody’s downgraded to Caa1 from B2 the rating on revolving credit facility at the Swissport International AG level.

Moody’s also dropped to Ca from Caa3 the instrument rating on the senior secured notes and the senior unsecured notes issued by Swissport Investments SA.

The agency changed the outlook to negative, from ratings under review. This rating action concludes a review for downgrade Moody’s started on March 25, the agency said.

“The action reflects the increasing duration and severity of the coronavirus outbreak. Moody’s estimates that Swissport’s existing financial resources are insufficient to fund operational cash burn over a prolonged period of time, while the airline industry volumes will remain deeply constrained this year and next,” the agency said in a press release.

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