Moody's views SAS Group's move for upsized facility as positive

London
Source: Flightglobal.com
This story is sourced from Flightglobal.com

Moody's Investors Service "views positively" SAS Group's decision to increase its existing revolving credit facility to SEK3.5 billion ($520 million) from SEK3.1 billion.

The maturity on the financing will be extended to March 2015 from June 2013.

The Scandinavian governments, which also jointly own 50% of the group's shares, the Knut and Wallenberg Foundation, as well as seven banks are participating in the facility - a move that Moody's says contributed to its "favourable assessment" of the financing.

The availability of the credit facility until 2015 is conditional on SAS Group's full implementation of its newly proposed '4XNG' - a next-generation version of its previous '4 Excellence' strategy, unveiled in September 2011.

The company's new plan seeks to achieve cost savings and improve earnings by around SEK3 billion per year by 2015, as well as to enhance liquidity by around SEK3 billion through asset sales.

SAS Group's board will rule on whether to approve the facility on 18 November.