Spirit Airlines rating affirmed at BB+

admin
By admin July 25, 2016 10:22

Spirit Airlines rating affirmed at BB+

Fitch Ratings has affirmed the Issuer Default Rating for Spirit Airlines at ‘BB+’. The Rating Outlook is Stable. Fitch has also affirmed the ratings on Spirit’s 2015-1 series of enhanced equipment trust certificates.

The rating is supported by Spirit’s solid profitability, healthy liquidity, and low cost structure. Spirit’s cost advantage over its peers remains a significant ratings factor as it provides the company a meaningful cushion to operate through potential future economic downturns while maintaining adequate financial health, says Fitch. The company’s 20%+ EBIT margins have put it among the most profitable airlines in the industry for the past five years. Despite significant unit revenue headwinds and Fitch’s expectations that operating margins will decline from highs seen in 2015, Spirit is still expected to generate above average margins throughout our forecast period.

admin
By admin July 25, 2016 10:22