Moody’s assigns Western Global B2, notes B3

Moody’s Investors Service said it assigned first-time ratings to Western Global Airlines, LLC, including a B2 corporate family rating and a B3 long-term rating to the company’s proposed senior unsecured notes due 2025.

“Western Global has recently benefited from the increased demand for its global air cargo services as a large portion of passenger aircraft, which has capacity for air cargo, has been grounded because of the coronavirus pandemic,” said Inna Bodeck, a Moody’s Investors Service vice president, in a press release.

“However, the company has yet to demonstrate consistent operating results and the ability to operate with financial leverage, albeit relatively low, at the time when the company is experiencing a shift in ownership with associated changes to its corporate governance arrangements,” Bodeck added.

The B3 rating on the notes mirrors the notes’ unsecured priority behind the secured term loan, Moody’s said.

The proceeds and a new unrated $80 million term loan A and about $30 million of cash will be used to fund the purchase of a portion of shares from its shareholders on behalf of an employee share ownership trust.

The outlook is stable.

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