Moody’s assigns Baa3 to Wizz Air

Moody's Investors Service said it assigned a Baa3 long-term issuer rating to Wizz Air Holdings plc.

The outlook is stable.

"Wizz Air's Baa3 rating reflects its growing and dominant market position in Central and Eastern Europe. This is underpinned by the company's ultra-low-cost business model and strategy to stimulate growth by creating new and more frequent travelers, as well as capitalizing on stronger GDP growth relative to the rest of Europe," Moody's vice president, senior credit officer Jeanine Arnold said in a news release.

"To meet strong passenger demand, Wizz Air plans to significantly invest in new aircraft, which will likely drive negative free cash flows over the next few years. However, Wizz Air has excellent liquidity and this new aircraft will support the company's competitive position and ensure its operating profit margins remain one of the strongest in the European airline industry."

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