News
Air NZ receives credit rating upgrade from Moody's
November 27th 2023
Ratings agency, Moody's Investors Service (Moody's) has lifted Air New Zealand's (Air NZ) issuer rating and senior unsecured debt rating to Baa1, from Baa2 previously. Read More » The baseline credit rating (BCA) was upgraded to baa3, from ba1. "The rating action reflects Moody's view that Air NZ's standalone credit profile has returned to pre-pandemic levels, underpinning its BCA improving back to baa3 from ba1," Moody's said. "Air NZ delivered a solid result for the year ended 30 June 2023, driven by a return of passenger capacity to 74.5% of pre-COVID levels for the year and 96.6% in June 2023." Moody's also noted revenue per available seat kilometre (RASK) remained "elevated” at about 45% higher than in 2018/19, which more than offset cost inflation. This enabled the airline to reduce its gross debt to earnings before interest, tax, depreciation and amortisation (EBITDA) ratio to 2.3 times while maintaining higher than normal levels of liquidity. Moody's maintained its stable outlook for the company, which reflected its "expectation that Air NZ will maintain its credit metrics within the range set for its rating".
