The COVID-19 pandemic continues to severely disrupt global air travel, affecting demand from aircraft manufacturers, so we now expect Aernnova will recover slower than we forecast previously. In our new base case, we anticipate a modest recovery only from 2022 and leverage reducing below 10x, assuming a slight return of profitability and positive free operating cash flow (FOCF). We are lowering our ratings on Aernnova to 'B-' from 'B'. The stable outlook reflects the group's healthy liquidity in the absence of short-term debt maturities, after its refinancing and full repayment of its revolving credit facility (RCF) in 2020. The stable outlook reflects our view that the group has sufficient liquidity and measures implemented should allow it to face reduced demand
