S&P trims Aernnova

S&P said it downgraded Aernnova Aerospace Corp. SA to B- from B, citing the pandemic’s continued punishment to global air travel.

“Challenging conditions in the aerospace industry will keep Aernnova's results under pressure through 2021 at least. We forecast that the civil aerospace sector and global air passenger traffic will recover weakly in 2021, with traffic and revenue still 40%-60% lower than in 2019, compared with our previous estimate of 30%-40% lower,” S&P said in a press release.

“Despite pressure on revenue and EBITDA, we believe that Aernnova will generate positive FOCF in 2021. To cope with reduced demand due to the pandemic, Aernnova's management has implemented measures to gain flexibility and restore its cash consumption,” the agency said.

The outlook is stable.

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