Last checked at 2 Apr 2020 09:37
02 April 2020
Heathrow Finance's credit outlook update
Credit rating agency Moody's announced that it is changing the outlook on the ratings at Heathrow Finance plc to negative from stable due to the ongoing uncertainty surrounding the spread of COVID-19. Moody's is not downgrading Heathrow's debt which remains unchanged at Ba3.
Heathrow's financial position remains robust with £3.2bn of cash and committed facilities available to the business. Management continues ongoing work to reduce the airport's cost base to safeguard the financial resilience of the business.
The agency notes the negative outlook reflects "rising credit and liquidity risks due to the sharp decline in traffic as a result of the implementation of travel restrictions and the uncertainties around traffic rebound prospects. The negative rating outlook also reflects Moody's expectation that the contraction in cash flow generation resulting from the declining passenger levels will result in a deterioration of key credit metrics in 2020".
Heathrow Chief Financial Officer Javier Echave said:
"The spread of COVID-19 is having a tragic human cost and significant effects across the global aviation industry. Prudent management and investment in the airport over the past decade puts Heathrow in a strong financial position. We've taken steps to reduce our cost base and reorganise our operation which will help us keep Britain's hub airport operating and protect vital supply lines throughout this crisis. We will continue working to maintain investor confidence".
Further updates will be provided as part of our Q1 results scheduled to be published on 1st May 2020.
For investor enquiries please contact Christelle Lubin on +44 7764 805 761
For media enquiries please contact Weston Macklem on +44 7525 825 516