Moody's lowers DME view to stable

Moody's Investors Service said it changed the outlook on all ratings of DME Ltd. (Moscow Domodedovo Airport) to stable from positive.

Moody's also said it affirmed the company's Ba1 corporate family rating, Ba1-PD probability of default rating and Ba1 senior unsecured rating of the dollar-denominated loan participation notes issued by DME Airport DAC.

The outlook revision reflects DME's weaker-than-expected operating and financial performance, as well as the suspension of the full-scale launch of the new terminal, Moody's said.

The suspension of the new international terminal launch at full capacity also didn't allow the airport to strengthen its competitive position and enhance revenue base and profitability as expected, the agency said.

The delay was due to the government's inability to complete new aprons on time, Moody's said, even though the company delivered its part of the investment program on schedule.

The ratings are underpinned by DME's sound liquidity with the comfortable debt-maturity profile following the successful refinancing of the $221.5 million notes in November 2018, the agency said.

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