Fitch slashes Aerotranscargo

Fitch Ratings said it downgraded Aerotranscargo's (ATC) long-term issuer default rating to B-/negative from BB-/stable. Concurrently, Fitch withdrew the rating for commercial reasons. The agency also withdrew ATC's senior unsecured rating of BB-(EXP) as the company does not plan to go ahead with this issuance.

“The downgrade reflects the severe impact on ATC's business from the deterioration of the air cargo market resulting in the loss (non-renewal) of almost all key contracts and a consequent decline in profits. This in turn results in cash burn with limited visibility on funding prospects. Liquidity is squeezed with $10 million of cash at end-1H23,” Fitch said in a press release.

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