Moody’s Upgrades Czech Aeroholding’s Rating to That of the Czech Republic
Prague, 6 February 2017
The renowned Moody’s Investors Service agency has upgraded Czech Aeroholding’s rating to A1 and changed the outlook to stable, thus improving the A2 rating with a positive outlook. The agency’s decision is based on the fulfilment of the company’s commitment to implementing a prudent financial policy, the progress the company has made in the implementation of its corporate strategy and the way it has developed the client bases of its daughter companies. Thanks to the upgrade, Czech Aeroholding has thus become the only corporation outside the banking sector to have the highest rating available in the country, the same as that of the Czech Republic.
“The rating upgrade confirms the efficiency of our business plan and the successful implementation of our long-term strategy. This is the third time in the last three years that Moody’s has increased Czech Aeroholding’s rating. Now, we have reached the highest available ranking of A1,” Václav Řehoř, Czech Aeroholding Chairman of the Board of Directors, said, adding: “The rating equal to that of the Czech Republic is a great sign for our business partners and shareholders. It confirms our motivation to invest in the further development of the company and increases potential options for long-term financing.”
Moody’s has supported its latest decision by the following rationale: The implementation of a prudent financial policy that will, over the medium term, result in Czech Aeroholding’s debt reduction, the progress the company has made in the implementation of its corporate strategy, approved at the beginning of 2015, and the development of the client bases of its handling and aircraft maintenance businesses.
The stable outlook assigned to the rating reflects Moody’s expectation that the company will continue to reduce its indebtedness until at least the early 2020s.
The rating was assigned to Czech Aeroholding taking into account the value of the entire Czech Aeroholding Group. It reflects positively its stable cash flow, competitive aeronautical charges and very strong financial profile, which Moody’s expects will be resilient to the impact of any future development investments.