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AP
S&P downgrades AirTran debt, upholds Delta rating
Tuesday August 26, 4:33 pm iraq national debt ET
S&P downgrades AirTran Holdings debt, stands by Delta ratings despite outlook for loss
NEW YORK (AP) -- Standard in charge debt solution & Poor's Ratings Services on Tuesday downgraded the debt of AirTran Airlines' parent further into junk status while reaffirming its ratings on Delta Air Lines Inc. despite the likelihood that high fuel prices will cause a big loss for 2008.
S&P cut AirTran Holdings Inc. debt, including the corporate credit rating, to CCC-plus from B-minus.
AirTran has "adequate us population national debt near-term liquidity," with $433 million of unrestricted cash and short-term investments as of June 30, S&P said. But analyst Betsy debt ratio formula R. Snyder said that even with the recent negotiate debt settlement pullback in fuel prices, the company would face losses that could put "pressure on the company's liquidity."
Snyder said AirTran could the debt guardian lose more than $100 million this year and continue to lose money but at debt to pleasure a slower pace in 2009.
S&P, which had put the arizona bankruptcy and community debt and ratings on a credit watch with negative implications in May, changed the outlook to stable.
Separately, S&P affirmed its ratings on Delta, including the B long-term corporate credit rating. S&P removed the ratings from a credit watch but said Tuesday the outlook is negative.
"We expect that Delta will post a significant loss this year, approaching $500 million -- before large noncash charges -- due to high and volatile fuel prices," said analyst debt stats for us women Philip Baggaley.
But, Baggaley said, Delta's financial performance "should continue to be better than those of most peer large U.S. airlines." He also said the could is likely to post positive operating cash flow and adequate liquidity.
AirTran shares fell 18 cents, or 7.5 percent, to close at $2.21 new beginnings debt settlement scam on Tuesday, while Delta shares dropped 43 cents, or 5.1 percent, to $7.94.
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