Southwest Airlines Co. Ratings Lowered To 'BBB-' From 'BBB' On Acquisition Of AirTran Airways Inc.; Outlook Is Stable May 11
- ID: 1724293
- May 2011
- Standard & Poors
On May 2, 2011, U.S.-based Southwest Airlines Co. acquired AirTran Holdings Inc., parent of low-cost airline AirTran Airways Inc., in a cash and stock transaction. We are lowering our ratings on Southwest, including the corporate credit rating, to 'BBB-' from 'BBB' due to the weaker financial profile the company will present after the assumption of AirTran's roughly $3 billion of debt and leases. We are removing the ratings from CreditWatch, where we placed them with negative implications on Sept. 27, 2010, when the acquisition was announced. We are assigning a stable outlook, based on our expectation of a relatively consistent financial profile over the next two years as Southwest integrates AirTran into its operations. NEW YORK (Standard & Poor's) May...
Companies mentioned in this report are:
- Southwest Airlines Co.
- Delta Air Lines Inc.
- AirTran Holdings Inc.
Action: Outlook: Stable
Action: Removed From CreditWatch
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Research type: News
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