Etihad Airways awarded 'A' credit rating from Fitch

DUBAI: Fitch Ratings has given Etihad Airways its first ever 'A' credit rating, citing the UAE flag carrier's extensive network, strong market position for growth and cost advantage.

Fitch has given Etihad Airways a long-term Issuer Default Rating (IDR) based on analysis of Etihad's business, commercial performance and equity alliance strategy.

The Fitch rating said this growth strategy had "enabled Etihad to reach a sustainable operational scale and diversity at a much faster pace than rivals, and established a platform for more measured future growth."

"Etihad is favorably positioned on the cost curve compared with the European legacy carriers," with unit costs (CASK) much lower than those of its European rivals, The Fitch said in a statement.

Etihad is also a strategic investment partner in India's private carrier Jet Airways. The airline holds 24 per cent stake in the Mumbai-based carrier.

The credit rating reflected Etihad's "extensive network, strong market position, favourable geographic hub location poised for growth and cost advantage", Fitch said.

Welcoming the announcement, James Hogan, Etihad's president and chief executive said the 'A' rating by Fitch and its stable outlook would help the airline to raise funds in the future.

"This rating, which is based upon detailed analysis of our business performance and our strategy, will help international investors understand our story as we continue to expand our operations and raise additional external financing," said Hogan.

"We have already raised more than USD 11 billion to support our growth, from more than 80 financial institutions around the world. We raise that finance on commercial terms, with no sovereign guarantees or letters of comfort.

"We have always operated with a high level of transparency to the financial community. Our first credit rating now takes that transparency a step further," he said.

He also said that it supported Etihad's strategy of "fast-paced organic growth and establishing minority equity investments in key strategic partners around the world."