Delta earns another ratings upgrade, outlook "positive"
OREANDA-NEWS. September 16, 2015. Fitch has become the latest top ratings firm to upgrade Delta and give the airline a "positive" outlook.
The firm rated Delta BB+, up from BB. That's just short of investment grade, a key goal of the company's as it continues its post 9/11 revitalization.
"The ratings upgrade reflects on-going improvements to Delta's balance sheet, continued solid operating performance, better than expected free cash flow, and successful efforts to combat operating cost inflation," Fitch wrote in a press release issued this afternoon.
In addition to validating Delta’s performance, an improved credit rating means more flexibility and lower costs for the airline when it comes to financing expensive capital projects such as aircraft and airport improvements. This is critical to Delta as the company continues to reinvest in its business, and it will allow the airline to continue to improve the customer experience.
S&P cited Delta’s consistently strong earnings and cash flow, which has allowed Delta to significantly pay down its debt, while returning cash to shareholders via dividend payouts and share buybacks.
“The upgrade is based on our expectation that Delta’s credit measures will continue to strengthen in 2015 and 2016,” said Standard & Poors credit analyst Philip Baggaley.
Комментарии