S&P affirms Delta

Standard & Poor's said it affirmed the ratings and outlook on Delta Air Lines Inc. (CC/negative/--), which reported a heavy net loss of $646 million for the third quarter ended Sept. 30, in line with guidance provided Oct. 15.

The loss, far deeper than the $168 million deficit in the third quarter of 2003 and expected to be the worst reported by U.S. airlines this quarter, was driven by erosion of pricing in the domestic market and high fuel, according to S&P.

S&P said the rating on Delta reflects a high likelihood that, with an proposed debt exchange offer that would pay less than face value to certain holders of Delta unsecured bonds and junior classes of enhanced equipment trust certificates.

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