Qantas Rating Cut to Baa2 at Moody’s on Travel Plunge

[oz_mark]

Feb. 20 (Bloomberg) -- Qantas Airways Ltd., Australia’s largest carrier, had its credit rating cut for the first time in more than 15 years by Moody’s Investors Service as the global recession hammers demand for air travel.

Qantas tumbled to a record low in Sydney trading after its long-term rating was lowered one level to Baa2, two grades above junk. The outlook is stable, Moody’s said in a statement today.

Bloomberg.com: Australia & New Zealand

(Trading at $1.68 last I looked)

 

[Evan]

As a comparison anybody with any idea what are the other airlines are rated ?

I could imagine if they don't really like QF then then there would be some airlines in a lot more trouble than that

E

 

[Nigelinoz]

BA's is only just above junk status :FT.com / Companies / Airlines - British Airways credit rating close to junk status

 

[Mal]

Interesting quote from the above article:

Only four airlines are currently rated investment grade by S&P – Southwest Airlines of the US and Australia’s Qantas at triple B plus, and Germany’s Lufthansa at triple B with British Airways, the lowest of the four, at triple B minus.

 

[oz_mark]

As a comparison anybody with any idea what are the other airlines are rated ?

I could imagine if they don't really like QF then then there would be some airlines in a lot more trouble than that

E

Qantas are pretty much at the top of the pile as far as airlines go.

 

[JohnK]

(Trading at $1.68 last I looked)

Wow! I don't remember the Qantas share price that low.

 

[oz_mark]

Wow! I don't remember the Qantas share price that low.

Closed at 1.565 on Friday. (and DJ is down at 0.24)