Moody's upgraded International Airlines Group's (IAG) - the parent company of airlines such as British Airways (BA), Iberia, and Aer Lingus - senior unsecured ratings to Baa3 from Ba2 on May 15, 2024, as well as its long-term issuer rating to Baa3. The rating agency withdrew its Ba1 corporate family rating (CFR) and Ba1-PD probability of default rating (PDR). It added that IAG's outlook is ""stable"".
""IAG's investment grade ratings reflect its strong credit ratios and Moody's expectation that they can withstand some degree of downside from external shocks inherent to the airline industry,"" said Moody's vice president - senior analyst and lead analyst for IAG Frederic Duranson. ""The group's solid business quality and prudent financial policy, including excellent liquidity, also support its investment grade rating.""
Moody's rationale behind the rating upgrade was largely due to IAG's continued improvements in operating performance and its operating profit of €3.6bn for the financial year ending March 31, 2024. IAG's first quarter 2024 report saw profits increase to €68 million, up from €9 million in the same period a year prior.
Moody's upgrades IAG's rating to Baa3, outlook stable
