Fitch raises Aeroflot’s credit rating to BB–
Fitch Ratings has raised Aeroflot’s credit rating from B+ to BB– with a Stable outlook as part of its annual review of the airline’s rating.
The ratings agency cited positive trends in the Russian market, the Company’s operational and financial results, as well as the adoption by the agency of new ratings criteria for government-related entities. Fitch also noted Aeroflot’s strengths including a developed and diversified route network, favourable hub position, efficient cost management and Aeroflot’s strong domestic market position.
AAA : the best quality companies, reliable and stable
AA : quality companies, a bit higher risk than AAA
A : economic situation can affect finance
BBB : medium class companies, which are satisfactory at the moment
BB : more prone to changes in the economy
B : financial situation varies noticeably
CCC : currently vulnerable and dependent on favorable economic conditions to meet its commitments
CC : highly vulnerable, very speculative bonds
C : highly vulnerable, perhaps in bankruptcy or in arrears but still continuing to pay out on obligations
Fitch also uses intermediate +/− modifiers for each category between AA and CCC