airBaltic Faces Financial Pressure as Fitch Downgrades Rating and Bondholders Appoint Legal Counsel
Fitch Ratings has downgraded airBaltic's long-term default rating from 'B-' to 'CCC+', highlighting significant risk concerning the airline's ability to refinance a €340 million bond due in July 2024. In response to the growing uncertainty, a group of bondholders has retained the law firm Dechert LLP to represent their interests. The downgrade reflects concerns over the timing and form of potential support from the Latvian government, the airline's majority shareholder. While airBaltic's performance has improved, the upcoming bond maturity remains a critical financial hurdle. The carrier is reportedly considering an Initial Public Offering (IPO) as one possible solution to raise capital.
Official Source: https://aircargoweek.com/airbaltic-bondholders-hire-legal-team-as-fitch-downgrades-airline/
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