UAE – Mubasher: Moody's Investors Service (Moody's) has affirmed the Baa3 issuer rating of Dubai Aerospace Enterprise (DAE) while revising the outlook to stable from negative.

Moody's has also affirmed the Baa3 long-term senior unsecured rating of its subsidiary DAE Funding, with a stable outlook, according to a recent press release.

Moody's affirmation of DAE's ratings shows the company's strong liquidity position, strong capital management, and disciplined transaction underwriting, enabling it to manage the aviation sector challenges facing earnings and cash flow.

The affirmation is also based on Moody's expectation that air travel volumes will be growing through 2023, which will gradually tackle the challenges before profitability and earnings.

In addition, Moody's has revised DAE's outlook to stable based on expectations of higher demands for leased aircraft, which will help DAE to improve its profitability and cash flow metrics over the next 12-18 months.

It is noteworthy to mention that during the first quarter (Q1) of 2021, the company's net profits plunged to $8.3 million from $76.7 million in the year-ago period.