S&P trims European airlines

S&P said the global coronavirus pandemic has sent air travel plunging and the agency is now forecasting a global recession this calendar year.

As a result, the agency is lowering by one notch its ratings on easyJet plc, Ryanair Holdings plc, Deutsche Lufthansa AG, International Consolidated Airlines Group, SA, British Airways plc, Air Baltic Corp. AS, Turk Hava Yollari AO and SAS AB. In addition, S&P is placing all of these ratings on CreditWatch with negative implications.

In addition, S&P assigned final ratings to Transportes Aereos Portugueses, SGPS, SA and placing it on CreditWatch negative.

“We expect to resolve the CreditWatch placements once we can assess the potential future impact of the outbreak on each company's credit metrics and liquidity with more certainty. The ultimate impact of the coronavirus outbreak will depend on its duration and severity, and the type and rigorousness of measures airlines and government bodies take to mitigate it,” the agency said in a press release.

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