DBRS cuts Voyager Aviation

DBRS said it downgraded the long-term issuer rating of Voyager Aviation Holdings, LLC to BB (low) from BB and its long-term senior debt rating to B (high) from BB (low).

Concurrently, DBRS downgraded the long-term issuer rating of the company’s wholly owned subsidiary, Voyager Finance Co. to BB (low) from BB and its long-term senior debt rating to B (high) from BB (low).

DBRS removed the ratings from under review with negative implications where they were placed on March 31, 2020.

The one-notch differential between the issuer ratings and the senior debt ratings reflects the substantial encumbrance of the company’s aircraft portfolio as collateral for secured funding, DBRS said.

“The rating actions consider DBRS Morningstar’s expectation that the global economic downturn brought on by the coronavirus disease (Covid-19) and the dramatic adverse effect on the global aviation industry will pressure Voyager’s ability to rebuild its earnings generation ability in 2020,” the agency said in a press release.

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