Oil Prices And Europe's Woes Pose Risks To Stable Credit Quality In North American Transportation, S&P Report Says Jan 12
- Language: English
- Published: January 2012
- Region: Europe, North America, United States
Foul weather from the Midwest to the Northeast in 2011 has led U.S. airlines to cancel flights at the fastest rate since 2001, Bloomberg reported Friday. Through Sept. 21, there have been nearly 104,000 canceled flights, amounting to 2.36% of the total. Adding to the problem, capacity cuts (15% since 2008) have made it harder for travelers to rebook. Over the past year, the Valuation and Risk Strategies (VRS) research team has recommended bonds issued by only one U.S. carrier: Southwest Airlines. Our Risk-to-Price (R2P) analytic measures how well a given security compensates investors for underlying market and credit risks, and Southwest's bonds were the only ones out of all the industry's securities that we score that offered superior risk-adjusted...
Companies mentioned in this report are: CSX Corp.,Southwest Airlines Co.,Union Pacific Corp.,Norfolk Southern Corp.,CSX Transportation Inc.,J.B. Hunt Transport Services Inc.,United Parcel Service Inc.
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues.
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CSX Corp.,Southwest Airlines Co.,Union Pacific Corp.,Norfolk Southern Corp.,CSX Transportation Inc.,J.B. Hunt Transport Services Inc.,United Parcel Service Inc.