Moody's prunes Spirit Airlines

Moody's Investors Service said it downgraded Spirit Airlines, Inc.’s ratings, including its corporate family rating to B2 from B1 and probability of default rating to B2-PD from B1-PD. The agency also lowered the senior secured rating assigned to Spirit IP Cayman Ltd.'s 8% backed senior secured notes, which are secured by the company's loyalty program and brand IP to Ba3 from Ba2.

"Revenue and operating cash flow are growing at meaningfully slower rates than those Moody's expected heading into 2023," said Moody's lead analyst Jonathan Root, in a press release.

"Intense competition in the company's home Florida market, air travel system bottlenecks, and the accelerated engine inspections on Spirit's Airbus A320neo family aircraft that will crimp Spirit's capacity will sustain headwinds and operating inefficiencies that weigh on the company's financial performance," continued Root.

The outlook is negative.

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