SAS ratings removed from credit watch on reduced liquidity risk

By:  
London
Source: Flightglobal.com
This story is sourced from Flightglobal.com

SAS Group's long-term credit rating of "CCC+" has been removed from credit watch due to a stronger liquidity profile on the back of the airline's refinancing and restructuring plan, says Standard & Poor's.

The rating was placed on credit watch with negative implications on 19 November, 2012

The outlook on SAS is stable, reflecting the ratings agency's view that "increased efficiency linked to the restructuring plan" should allow the airline group to improve its operating performance and maintain its credit ratios in line with Standard & Poor's forecasts.

SAS' main challenge in future will be the "improvement of its cost competitiveness" relative to low-cost carriers, according to Standard & Poor's.

In addition, the ratings agency warns that the financial situation "could tighten toward year-end if SAS does not complete its disposal and cost-cutting programme in a timely manner."