Fitch Ratings has affirmed
At the same time, Fitch has chosen to withdraw the rating for commercial reasons. Accordingly, the agency will no longer provide ratings (or analytical coverage) for VAH.
VAH exited administration under the private ownership of
Virgin's business plan is focused on bringing back profitable routes and realigning its cost structure under its new ownership.
KEY RATING DRIVERS
Key rating drivers are not applicable because the rating has been withdrawn
DERIVATION SUMMARY
The rating of 'D' reflects VAH's earlier entry into voluntary administration and that its financial structure under new private ownership,
RATING SENSITIVITIES
Rating sensitivities are no longer relevant given today's rating withdrawal.
BEST/WORST CASE RATING SCENARIO
International scale credit ratings of Non-Financial Corporate issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from '
LIQUIDITY AND DEBT STRUCTURE
New Owners Determine Strategy: VAH's liquidity stresses led to it entering voluntary administration. The airline's new owners have worked to shore up the airline's ongoing financial profile. As part of the administration process, unsecured creditors will receive between
REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING
The principal sources of information used in the analysis are described in the Applicable Criteria.
ESG CONSIDERATIONS
Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. For more information on Fitch's ESG Relevance Scores, visit www.fitchratings.com/esg
Following the withdrawal of ratings for VAH, Fitch will no longer be providing the associated ESG Relevance Scores.
RATING ACTIONS
ENTITY/DEBT RATING PRIOR
Virgin Australia Holdings Limited LT IDR D Affirmed D
LT IDR WD Withdrawn D
VIEW ADDITIONAL RATING DETAILS
Additional information is available on www.fitchratings.com
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