Moody’s raises its ratings on UAL Corp.

By Dow Jones Newswires
Posted Sep. 29, 2010 at 3:59 p.m.

Moody’s Investors Service raised its ratings on UAL Corp. a notch, finishing the review of the airline it begun when the parent of United unveiled its deal to merge with Continental Airlines Inc.

It makes Moody’s the last of the big three credit-rating agencies to boost UAL, which is expected to become the world’s biggest airline by capacity when its $3 billion stock-swap merger closes, seen Friday. Moody’s had given the rating a one-notch boost in August as well.

The agency said it expects UAL’s credit metrics and liquidity to strengthen in coming quarters, as Moody’s predicts demand stay stable. It also anticipates little pressure from fuel costs or capital expenditures, based on the lack of any aircraft deliveries coming up soon.

Moody’s lifted UAL’s ratings to B2, still five notches below investment grade. It also affirmed its ratings on Continental, also at B2. The outlooks on both are stable.

The combined company, renamed United Continental Holdings Inc., will list its stock on the New York Stock Exchange under the symbol UAL.

United and Continental shares were both up about 1.6 percent in recent trading, the former at $23.38 and the latter at $24.54. Their gains this year have outpaced the broader market’s climb, with UAL’s 81 percent increase outstripping Continental’s 37 percent.

Read more about the topics in this post: , , ,

Companies in this article


Read more about this company »

UAL Corp.

Read more about this company »

Comments are closed.