Moody's rates Air Canada notes Ba2

Moody's Investors Service said it assigned a Ba2 rating to Air Canada's planned $2.75 billion of senior secured notes consisting of U.S.-dollar tranche due in 2026 and a Canadian dollar tranche due in 2029.

Air Canada's other ratings including Ba3 corporate family rating, Ba3-PD probability of default rating, and Ba2 senior secured term loan B rating remain unchanged.

The proceeds will complement Air Canada's expected term loan and will be used to refinance debt and for general corporate purposes, including the repayment of a $600 million senior secured revolving credit facility due in 2023, a $580 million term loan B due in 2023, C$200 million of senior secured first-lien notes due in 2023 and C$840 million of senior secured second lien notes maturing in 2024.

The outlook is negative.

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