Fitch slices Voyager Aviation

Fitch Ratings said it downgraded the long-term issuer default ratings of Voyager Aviation Holdings, LLC and Voyager Finance Co. to C from CCC. Fitch also lowered the senior secured debt ratings of notes issued by Voyager’s subsidiaries to CCC/RR1 from B/RR1 and the senior unsecured debt rating to C/RR6 from CC/RR6.

“The downgrades of the long-term IDRs and issue ratings reflect Fitch’s view that a default or default-like process has begun, following Voyager’s announcement on Feb. 17, 2021, that the company had reached an agreement in principle with its shareholders and a group of senior unsecured noteholders (representing more than a majority of the total outstanding notes) to commence a restructuring of the $415 million 8½% senior unsecured notes due August 2021,” the agency said in a press release.

Fitch said it considers this proposal a distressed debt exchange. The restructuring will result in some economic loss to the creditors, compared with the original contractual terms. It will be conducted to avoid bankruptcy, similar insolvency proceedings or payment default.

“Were such a restructuring to take place, Fitch would expect to classify the event as a distressed debt exchange and downgrade the ratings to RD,” the agency said.

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