Prague Airport maintained its high rating of Aa3, the outlook changed to negative
The reason for the change in the outlook for the worse is the overall rating of the Czech Republic.
Prague Airport defended its high rating in the investment zone at the Aa3 level at the Moody’s agency. Compared to last year, however, the agency’s initially stable outlook is limited to negative. The reason for the change in outlook is the overall rating of the Czech Republic (also Aa3), for which the agency also changed its outlook to negative in August.
Considering the rating of the Czech Republic, this is the highest possible rating that the airport could achieve. “The reason for regaining a high rating is primarily the strong financial profile of the company,” the airport announced today. Grade Aa3 is rated in the general investment band as very high quality, however, a reduction in the outlook may make loans more expensive in the future.
“Prague Airport has been operating very responsibly for a long time, and due to the slowdown in air traffic due to the pandemic and the energy crisis, the company is definitively returning to profitable operations this year. I am very happy that the high financial standing of our company is confirmed by such a recognized agency,” said the head of the airport, Jiří Poz.
According to the agency Moody’s, Prague Airport can benefit especially from the low level of indebtedness and, among other things, from the high volume of secured credit lines with banks. The airport operated for many years without loans, but at the end of the covid year 2020, it had to start drawing a billion dollar loan, and a year ago a framework agreement was concluded with representatives of the association of three banks for borrowing up to seven billion crowns. The money is not tied to a specific project, the airport is talking about strengthening financial stability during and after the pandemic.
With regard to this year’s season, the agency also appreciated that, unlike other airports in Europe, Ruzyne did not face a critical shortage of employees.
Rating in the investment zone České dráhy also defended this year in June, at the Baa2 level. That’s two degrees from the speculative band.
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