Sxf24 From United States of America, joined Aug 2007, 1262 posts, RR: 0
Reply 7, posted (5 years 6 months 3 weeks 7 hours ago) and read 2632 times:
For those who are interested, here's the definition of CCC. "An obligation rated 'CCC' is currently vulnerable to nonpayment and is dependent upon favorable business, financial, and economic conditions for the obligor to meet its financial commitment on the obligation. In the event of adverse business, financial, or economic conditions, the obligor is not likely to have the capacity to meet its financial commitment on the obligation."
United1 From United States of America, joined Oct 2003, 6137 posts, RR: 9
Reply 9, posted (5 years 6 months 3 weeks 4 hours ago) and read 2439 times:
Quoting HAJFlyer (Reply 8): n other words: It might be a good idea to shop around for some debtor in possession financing
If that is the case AA should have been looking for it since March and US quite a bit prior to that.
Quoting HAJFlyer (Reply 6): Is it a coincidence that the biggest is also the most creditworthy (and the one with the best domestic product is also the second most creditworthy) or is there a lesson in here?
I think your reading to much into that, B/B- is still bellow investment grade WN is the only US airline that has a decent unsecured credit rating of BBB+.
Just in case anyone wants to know what the different rating mean.
AAA : the best quality companies, reliable and stable
AA : quality companies, a bit higher risk than AAA
A : economic situation can affect finance
BBB : medium class companies, which are satisfactory at the moment
Non-investment grade (also known as junk bonds)
BB : more prone to changes in the economy
B : financial situation varies noticeably
CCC : currently vulnerable and dependent on favorable economic conditions to meet its commitments
CC : highly vulnerable, very speculative bonds
C : highly vulnerable, perhaps in bankruptcy or in arrears but still continuing to pay out on obligations
D : has defaulted on obligations and Fitch believes that it will generally default on most or all obligations
NR : not publicly rated