Qantas Airways Limited
(ASX:QAN)has had its credit rating cut by Standard & Poor’s ratings agency.
S&P says the cut was mainly because structural issues have accelerated for the airline and led to significantly reduced earnings.
Credit analyst May Zhong says the downgrade went beyond a cyclical weakness and indicated the acceleration of a more permanent structural trend.
S&P now has only two airlines with an investment-grade rating after it cut Qantas' rating to BB+, which is considered junk status, last week after the airline flagged a first-half loss of up to $300 million and announced plans to cut 1000 jobs.
Qantas generated a net profit of $6 million in fiscal 2013.
