Fitch upgrades Aeroflot to BB-

Fitch Ratings said it upgraded PJSC Aeroflot - Russian Airlines’ long-term foreign- and local currency issuer default ratings to BB- from B+ and removed them from rating watch positive.

The outlook is stable.

Fitch said the upgrade follows the publication of its new "Government-Related Entities Rating Criteria" (GRE criteria), under which the agency applied a bottom-up approach in the assessment of Aeroflot and its issuer default rating of BB- benefits from the two-notch uplift from the standalone credit profile of B.

“The uplift mainly derives from our assessment of a strong ownership and expectation of support and moderate socio-political implications of Aeroflot's default,” the agency said in a news release.

“Moreover, based on the overall support and the rating differential between Aeroflot's SCP and the Russian Federation (BBB-/positive), the company's rating is capped at three notches below the sovereign.”

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