Moody's affirms easyJet's Baa3 ratings; outlook changed to stable

(Alliance News) - Moody's Investors Service on Tuesday affirmed all the ratings of easyJet PLC, ...

Alliance News 15 September, 2021 | 11:29AM
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(Alliance News) - Moody's Investors Service on Tuesday affirmed all the ratings of easyJet PLC, including budget airline's Baa3 long-term issuer rating.

The outlook on all the ratings has been changed to stable from negative, the ratings agency added.

Moody's said the move follows easyJet's fully underwritten equity rights issue, alongside a new USD400 million revolving credit facility.

The new shares issued as part of easyJet's GBP1.2 billion rights issue started trading in London on Monday. The carrier turned to the cash raise as it looked to bolster its "long-term positioning" in the European airline market.

easyJet shares were trading 2.6% lower in London on Wednesday at 560.20 pence each.

The rights offer, which saw shareholders offered 31 new shares for every 47 existing shares already owned, was announced on Thursday last week. The rights issue was priced at 410 pence per share.

Moody's said the affirmation of ratings also reflects the improvement in liquidity, reduction in net debt and expected stronger recovery in balance sheet metrics as a result of the right issue.

Moody's said it expects the proceeds from the rights issue to be retained as cash on balance sheet, however, the company will seek to use surplus cash to repay debt and reduce its gross leverage at an appropriate point when a reduction in risks related to the pandemic allow.

By Evelina Grecenko; evelinagrecenko@alliancenews.com

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
easyJet PLC 596.60 GBX -0.53

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