Research Update: Grupo Aeromexico Upgraded To 'B+' From 'B' On Stronger Credit Metrics And Profitability Margins; Outlook Stable

Mexico's leading airline, Grupo Aeromexico S.A.B. de C.V., posted stronger credit metrics and EBITDA margins in 2023 and the first half of 2024. We think the company maintains its leading position in Mexico through its wide variety of international routes, strong position in Mexico, and premium service and customer experience--competitive advantages that should continue supporting solid credit metrics and profitability as it maximizes fleet investments and load factors. On Oct. 22, 2024, S&P Global Ratings raised its issuer credit rating on Aeromexico to 'B+' from 'B'. At the same time, we raised our issue rating on its outstanding $663 million senior secured notes due 2027 to 'BB-' from 'B+'. The recovery rating remains '2', reflecting our expectation for substantial recovery

...- Mexico's leading airline, Grupo Aeromexico S.A.B. de C.V., posted stronger credit metrics and EBITDA margins in 2023 and the first half of 2024. - We think the company maintains its leading position in Mexico through its wide variety of international routes, strong position in Mexico, and premium service and customer experience--competitive advantages that should continue supporting solid credit metrics and profitability as it maximizes fleet investments and load factors. - On Oct. 22, 2024, S&P Global Ratings raised its issuer credit rating on Aeromexico to 'B+' from 'B'. At the same time, we raised our issue rating on its outstanding $663 million senior secured notes due 2027 to '##-' from 'B+'. The recovery rating remains '2', reflecting our expectation for substantial recovery (70%-90%) in the event of a payment default. - The stable outlook reflects our view that Aeromexico's operating and financial performance should continue to improve through higher revenue and EBITDA in the next...

Research Update