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Free AccessAir France-KLM (NR, BB+, BBB-) Responds to EU decision on State Aid
AFFP has welcomed today's EU decision on State Aid being compliant (vs. EU court annulling it previously) and has clarified (as we noted yesterday was the case for both LHA and AFFP); "The Dutch and French aid measures were repaid in full by June 2022 and April 2023 respectively." Full here.
Perhaps a marginal credit positive for when the next crisis does come around (that EU rules won't stand in the way) BUT focus for us remains on earnings on the 25th and the year ahead - neither look good for AFFP. New 29s currently -35bps inside new Finnair 29s - equal rated on FOY's explicit government ownership/support, standalone worse for latter (-2 notches on ratings). Switch screens some value to us, we remain cautious on AFFP in general, particularly on potential hybrid refi supply.
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.