Fitch places Carlson Travel on watch

Fitch Ratings said it placed Carlson Travel, Inc.'s B+ issuer default rating, BB+/RR1 senior secured debt, and B+/RR4 senior unsecured debt on rating watch negative.

The RWN is based on the severe disruption to global travel caused by the coronavirus outbreak as well as the unknown depth and duration of the outbreak's impact, which will significantly weigh on the company's liquidity in the near term.

Fitch estimates the company has roughly five months of aggregate liquidity based on anticipated cash burn. This considers levers the company can exercise around its cost structure, including labor, as well as capital expenditures. Fitch expects to resolve the RWN within the next one to two months based on the evolution of the company's liquidity

© 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.