Saturday 7 December 2013

Saudi Gazette - Qantas is in ‘junk’ status

Saudi Gazette - Qantas is in ‘junk’ status:

"Embattled Australian carrier Qantas’ credit rating was downgraded by Standard & Poor’s to “junk” status Friday after the airline issued a shock profit warning and slashed jobs.

Qantas on Thursday flagged a half-year loss of up to Aus$300 million (US$271 million) and said it would axe 1,000 jobs as it struggles under the weight of record fuel costs and fierce competition from subsidised rivals.

In response, S&P lowered cut the airline’s rating from BBB-, the lowest investment grade, to BB+ and placed it on a creditwatch with negative implications.

That puts Qantas in what is known as “junk” status among professionals, increasing the cost of financing for the carrier and restricting access to investors that do not put their money in lower rated companies."

'via Blog this'

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