S&P cuts some JetBlue ratings

Standard & Poor's said it lowered selected ratings on JetBlue Airways Corp., including the corporate credit rating to B+ from BB-, the senior unsecured debt rating to B- from B, the equipment trust certificates to BB from BB+ and the short-term rating to B-3 from B-2.

Ratings on enhanced equipment trust certificates that are rated AAA due to their insurance guarantee are affirmed.

The outlook is stable.

S&P said the downgrade is due to the company's substantially reduced earnings, which has negatively affected its financial profile. Ongoing high fuel prices are the primary culprit for JetBlue's weak earnings performance, which is expected to culminate in the company's first annual loss since 2001. As a result, and along with increasing levels of debt associated with new aircraft deliveries, JetBlue's credit ratios, which had been among the strongest relative to other U.S. airlines, have weakened somewhat.

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