Moody's upgrades SAS

Moody's Investors Service said it upgraded SAS AB's corporate family rating to B1 from B2 and its probability of default rating to B1-PD from B2-PD.

The agency also upgraded subsidiary SAS Denmark-Norway-Sweden's backed subordinated loan rating to B3 from Caa1 and backed senior unsecured medium-term notes rating to provisional B2 from provisional B3.

Moody's affirmed the not-prime (NP) commercial-paper rating and the provisional not-prime backed other short-term rating.

The outlook is stable.

The upgrades reflect the company's material earnings improvement in fiscal year 2017, which further strengthened the company's credit metrics, Moody's explained.

The agency said it does not anticipate SAS' performance will improve substantially in fiscal year 2018.

But, the forecast of relatively stable oil prices at the current price levels and SAS' ongoing cost saving initiatives will support a stable operating performance over the next 12 to 18 months, Moody's said.

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