Fitch international ratings agency upgrades Aeroflot's long-term credit rating to «ВВ» level

Fitch international ratings agency upgrades Aeroflot's long-term credit rating to «ВВ» level 27 October 2021

Moscow, 27 October 2021 - The international ratings agency Fitch Ratings has upgraded its credit rating for PJSC Aeroflot from "BB-" to "BB", outlook has been changed from "negative" to "stable" level.

Fitch underlined active recovery of Russian market noting that "domestic revenue passenger kilometers (RPK) and load factor outperformed pre-Covid-19 levels". Analysts expect "international travel to gradually recover to 2019 levels by 2023, given the capacity removed during the course of the pandemic, which was reflected in heightened 2021 yields".

Analysts separately noted Company's successful efforts in rescheduling aircraft deliveries and lease payments restructuring underlining that this is "adding to financial flexibility" and "Aeroflot still operates one of the youngest aircraft fleet among large airlines globally". Special emphasis was put on the fact that "the airline is important for Russia's economy and also for developing connectivity among various regions in Russia", which is underpinned by timely government support measures provided during the pandemic.

Andrey Chikhanchin, Deputy CEO for Commerce and Finance at Aeroflot, commented on Fitch Ratings' decision:

"The upgrade of Aeroflot's credit rating by Fitch international ratings agency reflects significant effort made by the Company to improve the liquidity situation, as well as the systemic importance of Aeroflot Group for the industry and the country's economy as a whole. Restructuring of aircraft deliveries, raising additional capital, including loans backed by state guarantees helped the Company to navigate through the most difficult period of the pandemic. The upgrade of Aeroflot's credit rating and its stable outlook once again confirm the Company's reliable credit position for counterparties".