Fitch: DME view to negative

Fitch Ratings said it revised the outlook on DME Ltd. and DME Airport Ltd. to negative from stable.

The agency also said it affirmed DME’s long-term issuer default rating at BB+, along with the rating on DME Airport’s $300 million senior unsecured notes at BB+.

The outlook revision follows news that all Transaero flights currently operating from Domodedovo airport (DME) will be transferred to Vnukovo airport as of Oct. 25, Fitch said.

The negative outlook also considers news that Transaero’s proposed acquisition by Aeroflot is not going ahead and the airline may instead undergo bankruptcy proceedings, the agency said.

The loss of Transaero’s traffic will directly affect DME’s performance and put additional pressure on the airport in the currently weak economic environment, Fitch said.

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