Fitch downgrades Aeroflot

Fitch Ratings said it downgraded Aeroflot – Russian Airlines' long-term issuer default rating to BB- from BB.

“The downgrade reflects our updated macroeconomic and global aviation industry expectations and a weakening of Aeroflot's business and financial profiles over the next four years. With a deep global recession in 2020 in Fitch's baseline forecast hitting air travel demand well beyond the ongoing restrictions related to the coronavirus pandemic, we now assume Aeroflot's revenue passenger kilometres (RPK) to recover to its 2019 level only in 2023. This will leave profit margins and credit metrics weak for the previous rating level,” the agency said in a press release.

The outlook is negative.

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