Fitch assigns Western Global, notes B+

Fitch Ratings said it expects to assign Western Global Airlines, LLC a long-term issuer default rating of B+. Fitch also expects to assign B+/RR4 ratings to the company’s new senior unsecured notes.

Fitch provided ratings in connection with the partial sale of the airline to the company’s new employee stock ownership plan. “WGA plans to use $420 million of senior unsecured notes and $80 million of senior secured term loan borrowings to facilitate the transaction,” the agency said in a press release.

“WGA and other freight-focused airlines are benefiting from the steep drop off in cargo capacity in passenger airlines which has outpaced the decline in demand for shipments. This imbalance, while temporary, should support outsized performance in 2020 and potentially extend through 2021, depending on the recovery in capacity and demand dynamics,” Fitch said.

The outlook is stable.

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