Fitch assigns first time rating of ‘BB-‘ to Allegiant Travel

Fitch Ratings has assigned a first-time Long-Term Issuer Default Rating (IDR) of ‘BB-‘ to Allegiant Travel Company (ALGT). The Rating Outlook is Positive. Fitch has also assigned a ‘BB+’/’RR2’ rating to the company’s first lien term loan, revolver and notes. The ratings are supported by the company’s consistently strong profitability and the flexibility of its business model. Allegiant is solely focused on the US leisure market, which has allowed it to bounce back quickly from pandemic lows. The company maintains a low-cost structure, which allows it to stimulate demand with low ticket prices while maintaining profitability, supported by ancillary revenues