Posted at 12:31 p.m., Friday, May 25, 2007
S&P places Japan Airlines Corp. on Creditwatch list
Advertiser Staff
Standard & Poor's Ratings Services placed Japan Airlines Corp. and its Japan Airlines International Co. subsidiary on its CreditWatch list with negative implications.The ratings agency said the action reflects its monitoring of the stance of financial institutions towards the airline and reports that JAL has requested support from its primary bans in the form of a debt-for-equity swap on a portion of its debt.
Under Standard & Poor's criteria, a debt-for-equity swap is considered to be the equivalent of a default on debt obligations.
"Despite Standard & Poor's belief that there will be no major concerns regarding JAL's short-term liquidity, the corporate credit rating increasingly needs to be reviewed to reflect the credit impact of the financial institutions towards the company," the ratings agency said in a news release.
