Fitch has downgraded Public Joint Stock Company Aeroflot - Russian Airlines' (AFLT) LT FC and LC IDR to 'B-' from 'BB' and placed it on RWN, APA-Economics reports citing Fitch.
For AFLT the key drivers include sanctions on provision of aircraft and spares that will severely disrupt its business due to its all-leased fleet of mostly Boeing and Airbus aircraft, leading to a revision of its Standalone Credit Profile (SCP) to 'ccc' from 'b'. The government-related entity (GRE) assessment leads to a Top-down minus 1 FC IDR of 'B-'. The downgrade of the senior unsecured rating to 'CCC' reflects a low unencumbered asset base and relatively higher secured debt resulting in RR6.
For further drivers see 'Fitch Upgrades Aeroflot's IDR to 'BB'; Outlook Stable' dated 27 October 2021.
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