Moody’s Downgrades Alaska Air to Junk on Plan to Borrow More
- The credit grader lowered the airline’s score to Ba1 from Baa3
- Company plans on issuing notes to help refinance Hawaiian debt
Moody’s Ratings lowered the Alaska Air Group Inc.’s issuer rating to Ba1, the highest level of speculative grade.
Photographer: Eric Thayer/BloombergThis article is for subscribers only.
Moody’s Ratings cut Alaska Air Group Inc.’s credit grade to junk status after the company said it plans to issue secured debt to refinance borrowings from its acquisition of Hawaiian Holdings Inc., according to a statement on Tuesday.
The credit grader lowered the airline’s issuer rating to Ba1, the highest junk level, from Baa3, the lowest investment-grade score, and changed its outlook to negative from stable, signaling more downgrades could be coming in the medium term.