Published on : Friday, March 21, 2014
Ryanair Holdings Plc today (20 Mar) announced that it received a BBB+ rating (modified from a-) from Standard & Poor’s making it the highest rated airline in the world. This rating reflects the fundamental strength of Ryanair’s business model which has delivered a track record of high levels of profitability, superior cash generation,
and a very strong balance sheet with low levels of leverage. Ryanair has undertaken the rating process (with Citibank as advisors) as part of its plans to access capital markets to source secured and unsecured debt financing for its new 175 Boeing 737-800 aircraft order.
Ryanair has also completed a €70m systematic share buyback programme announced in December 20, 2013 bringing the total share buybacks in FY14 to €484m.
Ryanair’s CFO & Deputy Chief Executive Howard Millar said:
“We are very pleased with the Standard & Poor’s rating of BBB+ (modified from a-), which makes Ryanair the highest rated airline in the world and reflects the financial strength of Ryanair’s business model. The successful achievement of this BBB+ rating is part of our plan to access the capital markets to finance the purchase of our 175 Boeing 737-800 order via both secured and unsecured debt offerings. The BBB+ rating will enable us to achieve lower cost financing to ensure that we continue to have the lowest costs and the lowest fares in Europe.
The completion of our €70m systematic share buyback programme announced in December brings the total share buybacks completed in FY14 to €484m significantly ahead of our original €400m target”.
Tags: RYANAIR Is Highest Rated Airline