International rating agency Fitch Ratings has downgraded the long-term issuer default rating of Latvia’s national air carrier, airBaltic, from B-/Negative to CCC+, indicating “significant risks” for creditors, LETA reports. Fitch also downgraded airBaltic’s senior secured long-term notes worth EUR 380mn from B- to CCC+. The agency noted that airBaltic’s level of indebtedness was higher and financial flexibility weaker than expected. The company’s operating performance has been weaker than anticipated in 2025, with increased operating costs and low profitability. The company will thus require significant external financing over the coming 12 months. Moreover, Fitch highlighted uncertainty over airBaltic’s planned IPO timeline and expected proceeds.
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