Moody's downgrades easyJet

Moody's Investors Service said it downgraded easyJet plc's issuer rating to Baa2 from Baa1. Moody's also downgraded the ratings of its €1.5 billion senior unsecured bonds due in 2023 and 2025 to Baa2 from Baa1. All ratings of easyJet are on review for downgrade.

The rating action was prompted by the very sharp decline in passenger traffic since the outbreak of coronavirus started during January 2020, which will result in a significant negative free cash flow in 2020, a weakening liquidity profile and significantly higher leverage, the agency said.

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