Air Canada 2013 Annual Report Download - page 51

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2013 Management’s Discussion and Analysis
51
Moody’s Ratings
On November 27, 2013, Moody’s upgraded the following ratings relating to Air Canada:
• Air Canada's corporate family rating to B3 from Caa1 and probability of default ratings to B3-PD from Caa1-PD.
• New Senior First Lien Notes ratings to B1 from B2 and its New Senior Second Lien Notes rating to Caa1 from Caa2.
• Air Canada's speculative grade liquidity rating was raised to SGL-2 from SGL-3.
• The ratings on Air Canada's 2013-1 Class A, Class B and Class C enhanced equipment trust certificates were upgraded by
one notch to Baa2, Ba3, and B2, respectively.
• The rating outlook was changed to stable from positive.
Standard & Poor’s Ratings
On September 9, 2013 and September 17, 2013, Standard & Poor’s assigned the following ratings relating to Air Canada’s
refinancing:
• Air Canada's corporate credit rating: B-, stable trend.
• New Senior First Lien Notes rating of B+ and New Senior Second Lien Notes rating of CCC+.
• Air Canada's recovery ratings: New Senior First Lien Notes ratings of 1 and a New Senior Second Lien Notes rating of 5.
The ratings on Air Canada's 2013-1 Class A, Class B and Class C enhanced equipment trust certificates are: A-, BB, and B,
respectively.
On April 9, 2013, Standard & Poor’s affirmed its corporate rating on Air Canada as “B-” and revised the outlook to stable from
negative.
Fitch Ratings
On September 18, 2013, Fitch assigned the following ratings relating to Air Canada’s refinancing:
• Air Canada's long-term issuer default rating (IDR): B.
• New Senior First Lien Notes rating of BB and a New Senior Second Lien Notes rating of BB-.
• Air Canada's recovery ratings: New Senior First Lien Notes ratings of RR1 and a New Senior Second Lien Notes rating of
RR2.
The ratings on Air Canada's 2013-1 Class A, Class B and Class C enhanced equipment trust certificates are: A, BB+ and BB-,
respectively.
DBRS Ratings
On November 14, 2013, DBRS reaffirmed Air Canada’s Issuer Rating of “B” with a stable trend.
Ratings are intended to provide investors with an independent view of credit quality. However, they are not a
recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time by the rating
organization. Each rating should be evaluated independently of any other rating.