DBRS puts Aimia under review

DBRS said it placed Aimia Inc.’s issuer rating and senior secured debt rating of BBB (low) under review with negative implications, along with its preferred shares rating of Pfd-3 (low).

The action follows news that the company received a notice of contract non-renewal from Air Canada after the agreement’s expiration in June 2020, DBRS said.

The agency said the existing agreement and Air Canada's purchasing commitments to Aimia remain in place until June 2020.

The ratings are based on the strength of the company’s brands and its strong relationship with key commercial partners, DBRS said.

The ratings also consider Aimia’s exposure to consumer spending and redemption patterns amid a heightening competitive environment, the agency said, as well as the significant degree of revenue concentration.

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