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S&P Downgrades AirTran Credit Rating  
User currently offlineFlynavy From , joined Dec 1969, posts, RR:
Posted (6 years 1 month 3 weeks 6 days 7 hours ago) and read 2097 times:

http://www.forbes.com/feeds/ap/2008/08/26/ap5360174.html

Quote:
S&P cut AirTran Holdings Inc. debt, including the corporate credit rating, to CCC-plus from B-minus.

AirTran has "adequate near-term liquidity," with $433 million of unrestricted cash and short-term investments as of June 30, S&P said. But analyst Betsy R. Snyder said that even with the recent pullback in fuel prices, the company would face losses that could put "pressure on the company's liquidity."

Snyder said AirTran could lose more than $100 million this year and continue to lose money but at a slower pace in 2009.



11 replies: All unread, jump to last
 
User currently offlineAtlanta From United States of America, joined Jun 2008, 473 posts, RR: 1
Reply 1, posted (6 years 1 month 3 weeks 5 days 22 hours ago) and read 1980 times:

This is not good I hope they survive, every experience Ive had with them has been positive and there seats are so comfortable.

Plus if not i've got a lot of A+ rewards to use up  Wink

Atlanta



Welcome To The New Delta- The World's Largest Airline
User currently offlineDazed767 From United States of America, joined May 1999, 5498 posts, RR: 51
Reply 2, posted (6 years 1 month 3 weeks 5 days 21 hours ago) and read 1951 times:



Quoting Atlanta (Reply 1):
This is not good I hope they survive

They'll be fine  Smile


User currently offlineNwarooster From United States of America, joined Feb 2005, 1107 posts, RR: 3
Reply 3, posted (6 years 1 month 3 weeks 5 days 21 hours ago) and read 1943 times:
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Joe Leonard is gone. AirTran is probably heading for Chapter 11 bankruptcy.  old 

User currently offlineFlynavy From , joined Dec 1969, posts, RR:
Reply 4, posted (6 years 1 month 3 weeks 5 days 16 hours ago) and read 1846 times:



Quoting Dazed767 (Reply 2):
They'll be fine

Can I quote you on that?


User currently offlineEXAAUADL From , joined Dec 1969, posts, RR:
Reply 5, posted (6 years 1 month 3 weeks 4 days 20 hours ago) and read 1724 times:

I dont think either Joe Leonard is gone or FL will file for Chpt 11.

User currently offlineLightsaber From United States of America, joined Jan 2005, 13260 posts, RR: 100
Reply 6, posted (6 years 1 month 3 weeks 4 days 17 hours ago) and read 1684 times:
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Does anyone have a list of all the domestic airlines credit ratings? That's a pretty deep level of junk to be cut to... Are any besides FedEx and UPS credit worthy (BBB or better)?

Lightsaber



Societies that achieve a critical mass of ideas achieve self sustaining growth; others stagnate.
User currently offlineA330323X From United States of America, joined Oct 2003, 3039 posts, RR: 44
Reply 7, posted (6 years 1 month 3 weeks 4 days 16 hours ago) and read 1665 times:



Quoting Lightsaber (Reply 6):
Does anyone have a list of all the domestic airlines credit ratings? That's a pretty deep level of junk to be cut to... Are any besides FedEx and UPS credit worthy (BBB or better)?

AA-
5X

A-
WN

BBB
FX

B+
AS

B
CO
DL
NW

B-
AA
B6
UA
US

CCC+
FL



I'm the expert on here on two things, neither of which I care about much anymore.
User currently offlineLightsaber From United States of America, joined Jan 2005, 13260 posts, RR: 100
Reply 8, posted (6 years 1 month 3 weeks 4 days 15 hours ago) and read 1648 times:
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Quoting A330323X (Reply 7):
AA-
5X

A-
WN

BBB
FX

Thank you. I missed WN's investment grade rating. Has FX's rating slipped, or am I remembering wrong?

At least most of the airlines are B (or B+/B-).

I didn't realize FL was the only CCC+ airline either. Nice to get a good update!

Lightsaber



Societies that achieve a critical mass of ideas achieve self sustaining growth; others stagnate.
User currently onlineFL787 From United States of America, joined Aug 2007, 1545 posts, RR: 12
Reply 9, posted (6 years 1 month 3 weeks 4 days 15 hours ago) and read 1648 times:

Airtran will be fine and I find it tough to believe they will lose 100 million this year. How much have they lost in the first 2 quarters, like 35? They definitely cant lose too much money flying full planes with low costs. I know full doesnt mean anything but how bad can their profit margin be with how low the costs are already?


717,72S,732/3/4/5/G/8/9,744,752/3,763/4,772/3,D9S/5,M8/90,D10,319/20/21,332/3,388,CR2/7/9,EM2,ER4,E70/75/90,SF3,AR8
User currently offlineTOLtommy From United States of America, joined Dec 2003, 3297 posts, RR: 4
Reply 10, posted (6 years 1 month 3 weeks 4 days 13 hours ago) and read 1609 times:



Quoting Nwarooster (Reply 3):
Joe Leonard is gone. AirTran is probably heading for Chapter 11 bankruptcy.

Okay, so they've got $433m in unrestricted cash, and are expected to lose $100m this year. I question the number in the loss, but lets say its correct. How does this equal bankruptcy? Are you using public school math or what?


User currently offlineA330323X From United States of America, joined Oct 2003, 3039 posts, RR: 44
Reply 11, posted (6 years 1 month 3 weeks 4 days 12 hours ago) and read 1581 times:



Quoting Lightsaber (Reply 8):
Has FX's rating slipped, or am I remembering wrong?

It's been BBB for the last three or four years if I recall correctly.

Quoting FL787 (Reply 9):
How much have they lost in the first 2 quarters, like 35?

Try more like $48 million.

Quoting TOLtommy (Reply 10):
Okay, so they've got $433m in unrestricted cash, and are expected to lose $100m this year. I question the number in the loss, but lets say its correct. How does this equal bankruptcy? Are you using public school math or what?

That "unrestricted cash" number includes $75 million in credit card holdbacks. Also, in addition to whatever loss they post this year, they have to repay $40 million in debt during the second half.



I'm the expert on here on two things, neither of which I care about much anymore.
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