Moody’s downgrades Qantas credit rating.
Qantas has just issued a statement reaffirming its “strong financial position,” despite a decision today by ratings agency Moody’s to reduce its credit rating to Baa3/stable.
QF stressed that the rerating is still “investment-grade,” with the carrier one of only two airline companied as investment-grade by both Moody’s and S&P.
“With operating cashflow strengthening this financial year, a cash balance of more than $3 billion and the ability to adjust capital expenditure as appropriate, the Qantas Group remains in a strong funding position,” the company said in a statement to the stock exchange.
In spite of the significant deterioration in the global aviation operating environment over the past year, high fuel prices and the debt crisis in Europe, Qantas says the depth of its portfolio of businesses gives it the “flexibility and resilience to manage the effects of operational disruptions and economic volatility.
“Qantas, Jetstar, Qantas Frequent Flyer and Qantas Freight generate diverse revenue streams that stabilise earnings through the cycle,” the statement said.
“The Group has a clear strategy for the future, based on its strong domestic airline businesses, turning around Qantas International, the continued growth of Qantas Frequent Flyer and targeted expansion in Asia,” it added.
More information in tomorrow’s Travel Daily.