As recently as 10 Apr 2026 Fitch Ratings has downgraded Air Baltic Corporation AS's (airBaltic) Long-Term Issuer Default Rating (IDR) to 'CCC-' from 'CCC+'. Fitch has also downgraded airBaltic's senior secured long-term rating on EUR380 million bonds to 'CCC-' from 'B-'. The Recovery Rating is 'RR4'.
For context:
- Definition of Junk: Bonds rated BB+ or below by S&P and Fitch (or Ba1 and below by Moody’s) are considered speculative, or "junk".
- Where CCC- Falls: A CCC- rating is at the very bottom of that range, sitting below CCC+ and CCC.
- Default Risk: A CCC rating indicates "very weak" credit, often with a high risk of default or a high probability that the company is experiencing severe financial difficulties.
- Fitch 'RR4' rated securities have characteristics consistent with securities historically recovering 31%-50% of current principal and related interest.
In its April 2026 assessment Fitch furthermore notices: "The downgrade reflects airBaltic's very weak financial flexibility and acute liquidity pressure, which, absent additional external support, could lead to a liquidity crisis within the next six to 12 months. Near-term liquidity may be supported by a state loan and working-capital measures, but we view these levers as temporary. In our view, the company will require a large equity injection to sustain operations through 2026. The IDR reflects airBaltic's weak financial profile, with unsustainable leverage due high lease-adjusted debt and weaker financial performance in 2025, which we expect to persist into 2026. The rating also captures the rising risk of debt restructuring during 2026 if broader funding support is not secured."
https://www.fitchratings.com/researc...ccc-10-04-2026
Hmmm....