Qantas Airways Limited
(ASX:QAN) has had its credit-rating downgraded from BBB to BBB- just one notch above junk status.
Ratings agency Standard & Poor (S&P) cut the airlines debt rating by one level with a stable outlook.
S&P says Qantas' business risk profile has weakened due to structural pressures affecting the airline's international business.
The move comes a day after Qantas inked a 10-year alliance deal with Middle East based Emirates that is aimed to boost its international business into Europe.
Qantas recorded a net loss of $244 million in the 2012 financial year.
