Moody's downgrades Western Global

Moody's Investors Service said it downgraded Western Global Airlines, Inc.'s corporate family rating to Caa1 from B2 and its senior unsecured rating to Caa2 from B3 and placed the ratings on review for further downgrade.

“Moody's has downgraded Western Global's ratings to reflect its deteriorating liquidity position. The company's $47.5 million revolving credit facility, expiring Feb. 15, 2025, will likely remain fully utilized even after the company receives a return of certain deposits associated with its now aborted agreement to purchase two 777-F aircraft from the Boeing Co. (Baa2 stable).

“Furthermore, all of Western Global's assets are encumbered, limiting its ability to raise new funding on favorable terms. Additionally, declining operating block hours in recent quarters have contributed to weakness in Western Global's revenues and cash flow,” the agency said in a press release.

Moody’s said the review will analyze Western Global’s ability to deliver enough cash flow to start repaying its revolver and other debt.

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