S&P removes Air Baltic from watch

S&P said it removed its B ratings for Air Baltic and its senior unsecured notes from CreditWatch with negative implications. The agency placed the ratings on watch on March 20.

S&P also affirmed the company’s ratings, which follows a €250 million equity participation, approved by the European Commission, from the Latvian government because of the pandemic.

“The proceeds from the equity participation will strengthen Air Baltic’s liquidity, alleviate a risk of any potential payment default in the next 12 months and allow the airline to resume growth and increase activity as air traffic demand recovers. As we understand, the capital injection will be executed in one tranche by July 31, increasing the government’s share in Air Baltic beyond 80%,” S&P said in a press release.

The outlook is stable.

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