Moody's cuts Royal Schiphol

Moody's Investors Service said it downgraded the backed senior unsecured debt ratings of Royal Schiphol Group NV to A2 from A1 and the provisional rating on the backed senior unsecured medium-term note program of Royal Schiphol Group NV and Schiphol Nederland BV (together, Royal Schiphol Group or RSG) to prospective A2 from prospective A1, and changed the outlook to stable from negative on both entities.

At the same time, Moody's said it downgraded Royal Schiphol Group NV's Baseline Credit Assessment to baa1 from a3.

“The downgrade of Royal Schiphol Group's ratings reflects Moody's expectations that air traffic will not likely recover to the pre-pandemic level in the near term, and prospects for full recovery thereafter are likely to be somewhat impaired by caps of air transport movements (ATMs) which, together with increased cost pressures, and possibly continuing operational constraints, means that RSG is unlikely to be able to achieve credit metrics commensurate with an A1 rating over the short to medium term,” Moody’s said in a news release.

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