S&P cuts Avia Solutions

S&P said it downgraded Avia Solutions Group plc and its $300 million of senior unsecured notes due 2024 to BB- from BB.

“ASG's earnings will be under significant pressure in 2020 due to the Covid-19 pandemic. Covid-19 has forced most airlines to slash capacity; most airlines temporarily grounded their fleets for several months and governments have only recently eased travel restrictions for certain travel corridors. This has resulted in a sharp drop in demand for aviation services,” S&P said in a press release.

The agency said it forecasts ASG’s S&P Global Ratings-adjusted debt to EBITDA weakening toward 3.5x-4x in 2020, but sees it possibly improving toward 2.5x-3.5x in 2021.

The outlook is negative.

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