Wednesday, September 17, 2014   

Loss-making Aussie carrier Qantas earns junk status from another ratings agency
(01-09 08:35)

Embattled Australian carrier Qantas faces a further increase in borrowing costs after Moody's downgraded its credit rating to “junk'' status Thursday, just weeks after Standard and Poor's took the same action.
Moody's cited “a sharp deterioration in the company's core domestic business'' following a profit warning and job cuts plan in December, AFP reports.
In cutting Qantas's rating to Ba2, or junk status, from Baa3, Moody's senior vice president Ian Lewis blamed aggressive competition from domestic rival Virgin Australia.
“The downgrade to Ba2 reflects a worse-than-expected impact on Qantas's credit profile of a marked sharp deterioration in the company's core domestic business, which has been a key supporting factor of its previous investment-grade rating,’’ he said.
“The cause of the deterioration in the operating profile is largely due to the aggressive competitive actions by Qantas's key domestic competitor, Virgin Australia Holdings.''
S&P last month cut the airline's rating from BBB-, the lowest investment grade, to BB+ and placing it on a credit watch with negative implications.
The ratings put Qantas in what is known as “junk'' status among professional investors, increasing the cost of financing for the carrier and restricting access for investors that do not put their money in lower-rated companies.
Qantas flagged a half-year loss of up to A$300 million (US$267 million) and said it would cut 1,000 jobs as it struggles under the weight of record fuel costs and fierce competition from Virgin.
   
Other Business breaking news:
Nikkei inches up at midday (23 mins ago)
German investor optimism down on concerns of Ukraine, Scotland (09-16 18:22)
UK inflation slows in August (09-16 17:28)
Japan, China, SKorea finance chiefs to hold talks this week (09-16 17:00)
Hang Seng ends lower in shortened trade (09-16 16:19)
European stocks markets down at open (09-16 15:27)
Nikkei ends lower (09-16 14:26)
China's overseas investment soars as FDI drops again (09-16 11:46)
Tools available to remove U2 album from iTunes (09-16 10:57)
Nikkei down by break (09-16 10:49)

More breaking news >>

© 2014 The Standard, The Standard Newspapers Publishing Ltd.
Contact Us | About Us | Newsfeeds | Subscriptions | Print Ad. | Online Ad. | Street Pts

 


Home | Top News | Local | Business | China | ViewPoint | CityTalk | World | Sports | People | Central Station | Spree | Features

The Standard

Trademark and Copyright Notice: Copyright 2014, The Standard Newspaper Publishing Ltd., and its related entities. All rights reserved.  Use in whole or part of this site's content is prohibited.   Use of this Web site assumes acceptance of the
Terms of Use, Privacy Policy Statement and Copyright Policy.  Please also read our Ethics Statement.