S&P assigns BBB+ rating to easyJet's long-term debt

(ShareCast News) - EasyJet had a solid competitive position and was set to see strong profitability over the next two years, the world's most prestigious debt rating agency said on Friday.The company's low-cost model and relatively young aircraft fleet supported the company's operating efficiency, underpinning its solid financial ratios, Standard&Poor's said after announcing it had assigned a BBB+ rating to the carrier's long-term debt.S&P attached the same rating to the firm's recent £3bn medium-term note programme."The stable outlook reflects our view that easyJet will maintain its solid competitive position as one of the industry's leading cost positions, and therefore sustain its resilient and strong profitability over the next two years," the company said in a statement.The agency was therefore confident that Easyjet would be able to deliver a minimum adjusted funds from operations- to-debt ratio of well above 50% over the next two years.A conservative approach to developing its network was also seen as a strength for the company.However, there were factors which offset those strengths, such as: a lack of diversification outside of Europe, the lack of long-haul flights and its smaller scale versus many of its global peers.Smaller low-cost short-haul carriers' growth ambitions were also seen adding to competitive pressures in existing markets and especially in new ones, S&P said.