S&P upgrades Qantas rating from ‘junk’ status

This news has been read 5117 times!

A file photo taken on March 15 show a Qantas Boeing 747 in the skies above Melbourne. Australian carrier Qantas on Nov 17, got shot of its ‘junk’ status when Standard & Poor’s lifted its rating from ‘BB+’ to the prized investment grade ‘BBB-’ as the airline bounces back from a tough few years. The upgrade of Qantas’ long-term corporate credit and issue rating comes after the airline completed a profit turnaround this year, supported by lower fuel prices, and adopted a more conservative financial framework. (AFP)
A file photo taken on March 15 show a Qantas Boeing 747 in the skies above Melbourne.Australian carrier Qantas on Nov 17, got shot of its ‘junk’ status when Standard & Poor’s lifted its rating from ‘BB+’ to the prized investment grade ‘BBB-’ as the airline bounces back from a tough few years. The upgrade of Qantas’ long-term corporate credit and issue rating comes after the airline completed a profit turnaround this year, supported by lower fuel prices, and adopted a more conservative financial framework. (AFP)

SYDNEY, Nov 17, (AFP): Australian carrier Qantas on Tuesday got shot of its “junk” status when Standard & Poor’s lifted its rating from ‘BB+’ to the prized investment grade ‘BBB-’ as the airline bounces back from a tough few years. The upgrade of Qantas’ long-term corporate credit and issue rating comes after the airline completed a profit turnaround this year, supported by lower fuel prices, and adopted a more conservative financial framework.

“We view this framework to be materially more prudent and creditor-friendly than previously announced policies,” S&P credit analyst Graeme Ferguson said in a statement. “Qantas’ revised financial framework is more formal, forward-looking, and preemptive. It places greater emphasis on acting preemptively to protect the balance sheet when the airline anticipates periods of financial stress.”

The ratings agency downgraded Qantas to “junk” in December 2013 after the airline issued a shock profit warning and announced job losses as it struggled with record high fuel costs and fierce competition from rivals. But the carrier roared back into the black in August, posting a stunning turnaround of fortunes driven by aggressive cost-cutting.

It booked a Aus$557 million annual net profit in the year to June 30, 2015 — a sharp recovery from a net loss of Aus$2.84 billion in the previous corresponding period. Qantas chief executive Alan Joyce said the assessment was “a welcome endorsement of the hard work we’ve been doing”. “Our focus has been getting the business to an optimal capital position and to keep it there throughout the cycle,” he said in a statement.

This news has been read 5117 times!

Back to top button

Advt Blocker Detected

Kindly disable the Ad blocker

Verified by MonsterInsights