S&P rates Southwest Airlines notes BBB+

S&P said it assigned a BBB+ issue-level rating to Southwest Airlines Co.'s proposed senior unsecured notes due 2022 and 2027.

The agency said it rates the company's unsecured debt at the same as the corporate credit rating because no significant elements of subordination risk are present in its capital structure.

The corporate credit rating on Southwest reflects the company's consistent profitability, S&P said.

“Southwest has maintained a substantial cost advantage over its larger competitors since it began operating in 1971, although that gap has narrowed somewhat in recent years as it raised employee pay and its network competitors reduced their costs in bankruptcy,” the agency said in a news release.

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