S&P rates WestJet notes BBB-

Standard & Poor’s said it assigned a BBB- rating to WestJet Airlines Ltd.’s proposed C$400 million senior unsecured notes due 2021.

The notes benefit from an unconditional guarantee by all of the company’s existing subsidiaries, which include WestJet, the company’s primary operating subsidiary, S&P said.

The proceeds will be used to reduce short-term indebtedness and for general corporate purposes, including financing aircraft acquisitions.

S&P also said it equalized the rating on the proposed notes with the corporate credit rating on WestJet.

The agency said it expects WestJet’s priority debt to steadily decline in the next couple of years and its adjusted assets to increase as the company expands its aircraft fleet.

The company’s BBB- corporate credit rating is unchanged and the outlook remains stable.

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