S&P rates WestJet BBB-

Standard & Poor's said it assigned a BBB- long-term corporate credit rating to WestJet Airlines Ltd.

The outlook is stable.

The ratings reflect the company's fair business risk profile and modest financial risk profile, S&P said.

The company operates in the North American airline sector, which is considered high risk due to cyclical demand, high competition and capital intensity, said Jamie Koutsoukis, an S&P analyst.

However, providing some offset are WestJet's good competitive position in the markets it serves, relatively low operating costs for a Canadian airline and consistent annual profitability, even during industry downturns, Koutsoukis said in a press release.

WestJet has a solid market position in Canada with about 36% of the domestic market share and 20% of the transborder market, the analyst added.

© 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.