CHICAGO, Jan. 10 (UPI) -- Two bond ratings agencies have given a small boost to Chicago-based United Airlines, set to exit bankruptcy next month.
Standard & Poor's issued a B rating with a stable outlook. The company's exit financing facility was rated B-plus, with a recovery rating of 1, the highest possible rating.
Moody's rated United a "Corporate Family Rating" of B2 with a stable outlook. The company's exit financing facility received a Corporate Family Rating of B1 and a Speculative Grade Liquidity Risk Assessment rating of 2.
Favorable ratings from these agencies help lower a company's borrowing costs.
"We believe these ratings validate the work United has done and that the company is well positioned to compete with the strongest carriers, even with the industry's ongoing high fuel costs challenges," said Kathryn Mikells, United's vice president and treasurer.
"As the ratings note, United has vastly improved its cost structure, and with our extensive route system with access to major markets in the U.S., Asia and Europe and strong regional connections with United Express, United is able to generate stronger revenue per seat than its low-cost competitors."
