S&P puts Southwest on watch

Standard & Poor's said it placed Southwest Airlines Co.'s BBB+ long-term corporate credit rating on CreditWatch with negative implications.

"The CreditWatch placement is based on the company's weaker-than-expected revenue and earnings outlook," S&P analyst Betsy Snyder said in a statement.

"Southwest reported a small first-quarter loss and said that it expected revenue weakness to continue at least into the second quarter. The company's financial profile will be affected also by increased levels of secured debt and leases arranged since late 2008 to maintain adequate cash balances," the analyst continued.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.