Fitch affirms Heathrow’s long-term credit ratings

07 April 2020

Fitch affirms Heathrow's long-term credit ratings

Credit rating agency Fitch affirmed Heathrow Funding Limited's Class A and B bonds at 'A-' and 'BBB', respectively, with stable outlooks highlighting Heathrow's financial flexibility to navigate the uncertainty surrounding Covid-19. Fitch has also affirmed Heathrow Finance plc's outstanding notes at 'BB+' with a stable outlook.

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. 

Fitch's update reflects the agency's expectation that Heathrow's financial flexibility and ability to reduce its cost base will allow the airport to restore stronger credit metrics after a severe coronavirus-related volume shock in 2020, followed by gradual recovery between 2021-2024. The agency notes other supporting rating drivers including Heathrow's primary hub position and resilience to shocks, balance sheet flexibility and solid liquidity position.

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 - which Fitch have recognised today. 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

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