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Reading: Qantas suffers credit rating downgrade
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Travel Weekly > News > Qantas suffers credit rating downgrade
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Qantas suffers credit rating downgrade

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Published on: 6th December 2013 at 11:59 AM
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Qantas earlier today announced a trading halt for its shares on the Australian Stock Exchange as it awaited a decision on its credit rating by Standard and Poor's, which the airline considered "likely to be materially price sensitive".

The carrier has since seen Standard and Poor's downgrade its rating from BBB- (outlook stable) to BB+ (outlook negative).

The decision by Standard and Poor's comes in the wake of Qantas CEO Alan Joyce's announcement yesterday that it expects to post a substantial loss in the region of $250 to $300 million for the second half of 2013.

The flag carrier's share price has taken a battering over the past 48 hours since the news broke. Yesterday shares dived by over 11%, down to $1.07, in the biggest fall in one and a half years. Today the share price has dropped further still to sit at $1.06 in mid afternoon trading.

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