Fitch boosts WestJet

Fitch Ratings said it upgraded the long-term issuer default ratings of WestJet and WestJet Airlines, Ltd. to B from B-.

“The upgrade reflects continuing improvement in demand for Canadian air travel that is driving top-line growth and improved profit margins for WestJet. Results year to date have outperformed Fitch's prior expectations, and the agency now anticipates that EBITDAR leverage and coverage metrics will be consistent with B rating tolerances in the 2024-2025 timeframe.

“The upgrade also incorporates prospective EBITDA growth from WestJet's acquisition of Sunwing, which was completed in May 2023, and benefits of the company's strategic re-orientation. The rating is also supported by WestJet's healthy liquidity balance, it's low-cost structure, and its established business position in the duopolistic Canadian market,” the agency said in a press release.

The outlook is stable.

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