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S&P Cuts Spirit Airlines’ Debt to CCC on Cash Crunch Concerns
- Carrier buffeted by looming maturities, costs and demand woes
- Rating firm sees distressed exchange in company’s future
Spirit’s upcoming debt maturities include a $1.1 billion loyalty bond due in September 2025 and a $500 million convertible note due in 2026.
Photographer: Angus Mordant/BloombergThis article is for subscribers only.
S&P Global Ratings downgraded the debt of Spirit Airlines Inc. deeper into junk status by cutting it to CCC from CCC+, citing an expected cash crunch and inadequate liquidity in the next 12 months.
The credit rater also put the carrier on negative outlook on Wednesday, saying its “operating performance will remain pressured through the year.”