Air Transport Services Group, Inc.: Update to credit analysis

Air Transport Services Group, Inc.: Update to credit analysis following change in outlook to negative - Credit Opinion – 2024/03/18 – US$ 250.00 – ...Air Transport Services Group, Inc. (ATSG) maintains a strong position as one of the world's leading providers of air cargo fleet leasing and related services, including crew, maintenance and insurance (CMI) services. ATSG's credit challenges include its high customer concentrations. As of 31 December 2023, the US Department of Defense (DOD), Amazon, and DHL accounted for 34%, 30% and 12% of revenues, respectively. This challenge is partially offset by the benefits from the high credit quality of these customers and their long- term need for the services provided by ATSG. Positively, we view Amazon's 19.5% minority interest in ATSG results in an alignment of interests that reduces the risk that Amazon's business relationships with ATSG will diminish. Although ATSG's debt-to-EBITDA leverage has increased due to weaker-than-expected operating performance, leverage was relatively modest at 3.1x as of 31 December 2023, and we expect that it will rise only modestly although it is vulnerable to...

Moody's affirms ATSG's Ba1 corporate family rating and changes outlook to negative - Rating Action – 2024/03/01 – US$ 180.00 – ...MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS OR PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER. ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT...

Air Transport Services Group, Inc.: Update to credit analysis - Credit Opinion – 2023/09/27 – US$ 250.00 – ...Air Transport Services Group, Inc. (ATSG) maintains a strong position as one of the world's leading providers of air cargo fleet leasing and related services, including crew, maintenance and insurance (CMI) services. ATSG's credit challenges include its high customer concentrations. As of June 30, 2023, the US Department of Defense (DOD), Amazon, and DHL accounted for 32%, 34% and 12% of revenues, respectively. This challenge is partially offset by the benefits from the high credit quality of these customers and their long-term need for the services provided by ATSG. Positively, we view Amazon's 19.5% minority interest in ATSG will result in an alignment of interests that reduces the risk that Amazon's business relationships with ATSG will diminish. We anticipate that ATSG's moderate debt-to-EBITDA leverage (2.4x based on last 12 months EBITDA ended 30 June, 2023) will remain consistent as the company continues to invest in fleet, but that leverage is vulnerable to swings based on the cyclicality...

Moody's upgrades Air Transport Services Group, Inc. to Ba1 from Ba2; outlook is stable - Rating Action – 2022/06/22 – US$ 180.00 – ...MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS OR PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER. ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT...

Air Transport Services Group, Inc. - LGD Assessment – 2021/04/14 – US$ 750.00

Air Transport Services Group, Inc.: Update following ratings affirmation and revision of outlook to positive from stable - Credit Opinion – 2021/04/13 – US$ 250.00 – ...Air Transport Services Group, Inc.'s (ATSG) Ba2 corporate family rating reflects the company's strong position as one of the world's leading providers of air cargo fleet leasing and related services, including crew, maintenance and insurance (CMI) services, as well as its strong earnings prospects from its growing fleet, high margins and effective liquidity management. ATSG's earnings and cash flow have been more resilient than lessors of passenger aircraft due to the operating strength its cargo aircraft leasing business, particularly the leasing and CMI services associated with the time-definite package delivery network operations of key customers including Amazon.com, Inc. (A2 positive) and DHL (owned by Deutsche Post AG, A3 stable). ATSG's credit challenges include its high customer concentrations. In 2020, the US Department of Defense, Amazon, and DHL accounted for 31%, 30% and 12% of revenues, respectively. This challenge is partially offset by the benefits from the high credit quality...

Moody's affirms Air Transport Service Group's ratings (Ba2 corporate family rating); revises outlook to positive from stable - Rating Action – 2021/04/01 – US$ 180.00 – ...MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS OR PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER. ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT...

Air Transport Services Group, Inc.: Update to credit analysis - air cargo business prospering while air passenger business stalls - Credit Opinion – 2020/09/25 – US$ 250.00 – ...Air Transport Services Group, Inc.'s (ATSG) Ba2 corporate family rating reflects the company's strong position as one of the world's leading providers of air cargo fleet leasing and related services, including crew, maintenance and insurance (CMI) services, as well as its strong earnings prospects, high margins and effective liquidity management. ATSG's earnings and cash flow have been resilient due to the strength of its cargo leasing business even as global air passenger traffic has significantly declined as a result of the coronavirus pandemic. A key credit challenge is ATSG's high customer concentrations; in 2019, Amazon (A2 positive) and DHL (owned by Deutsche Post AG, A3 stable) and the US Department of Defense accounted for 21%, 14% and 36% of revenues, respectively; this challenge is partially offset by the high credit quality of these customers and their long-term need for the services provided by ATSG. An additional challenge is ATSG's negative tangible equity, which limits the...