Fitch downgrades DME

Fitch Ratings said it downgraded DME Ltd.'s long-term issuer default rating to BB from BB+. Fitch also downgraded DME Airport DAC's $350 million of loan participation notes due 2021 and $300 million of loan participation notes due 2023 to BB from BB+. The outlooks are negative.

“The downgrade reflects DME's projected average Fitch-adjusted net debt/EBITDAR increasing sustainably above 4x. This is a result of expected severe volume shock in 2020 driven by significant restrictions on mobility, together with the weakening macroeconomic environment in Russia, including ruble depreciation and low oil prices,” said Fitch in a press release.

“However, we believe that DME has sufficient liquidity to meet short-term needs and some financial flexibility to partially offset the expected revenue shortfall,” the agency said.

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