yo yo ma
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- Mar 15, 2007
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On the positive side, QF is one of only two airlines worldwide (Southwest being the other) to be considered investment grade by two ratings agencies.
Qantas moves one step closer to junk statusSMH said:Qantas has had its credit rating cut to the lowest investment grade by Standard & Poor’s after the airline yesterday struck a 10-year alliance with Emirates to turn around losses on international routes.
Qantas’s debt grade was lowered by one level to BBB- with a stable outlook, according to the ratings company.
‘‘Qantas’s business risk profile has weakened, because of the structural pressures affecting the airline’s international business,’’ S&P analyst May Zhong said. ‘‘Persistent pressures have eroded Qantas’s market share and inflicted losses on the airline’s international operations in the past few years.’’
Qantas yesterday announced a revenue and cost-sharing tie- up with Emirates, the world’s largest carrier by international passenger traffic, to turn around $450 million of annual losses on its international routes.
The airline last month reported its first annual loss for the group since it was sold by the government in 1995.
Qantas holds a Baa3 grade from Moody’s Investors Service, also the lowest investment grade ranking. The carrier is one of just two airlines worldwide, with Southwest Airlines, to be judged investment grade by two separate rating companies.
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