| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers H > Headlines for Heathrow Finance plc > News item |
Fitch rates Heathrow bonds BB+
Fitch Ratings said it assigned Heathrow Finance plc's proposed £250 million issue of high-yield bonds an expected BB+(EXP) rating with a stable outlook.
The expected rating is in line with the BB+ rating of the existing £600 million notes.
Despite a marginal increase in gross EBITDA leverage (by 0.15 times), Fitch said it views London Heathrow airport's credit metrics as solid for its BB+-rated instruments as the airport continues to benefit from a low interest rate environment and strong operating performance.
The proposed notes contain a higher covenanted debt to regulatory asset base ratio of 92.5%, compared with 90% for the existing notes. As a result, Fitch also reviewed the option available to management to gradually increase the existing ratio - currently at 85% for both the proposed and existing notes - to 87.5% in the medium-term, in line with management's current guidance to maintain headroom of five percentage points below the covenant level.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.