Qantas Airways Limited
(ASX:QAN) shares have been placed into a trading halt following yesterday's shock profit warning.
Reports have emerged that the S&P is on the verge of downgrading the airline's credit rating, after Moody's yesterday flagged a possible downgrade to its investment grade rating due to its deteriorating financial situation.
CEO Alan Joyce stunned the market yesterday with his forecast of a half year loss of up to $300 million, attributed to the strong Australian dollar, high fuel costs and challenging market conditions.
Other analysts, including CIMB, Goldman Sachs and Deutsche Bank, have wasted no time in slashing their recommendations and price targets for the national carrier, amid expectations it will sell terminal leases in an effort to shore up its credit rating.
Qantas generated a net profit of $6 million in fiscal 2013.
