Major airlines downgraded by S&P

The credit rating agency lowers the debt of American, United and Northwest citing a 'bit' of greater risk of liquidation. Paste this link into your favorite RSS desktop reader MINNEAPOLIS (AP) -- Standard & Poor's downgraded the debt of some of the nation's largest carriers on Friday, saying high fuel prices are likely to cause heavy losses this year at American, United and Northwest Airlines. S&P airline analyst Philip Baggaley said that in general, carriers face "perhaps a bit greater risk of liquidation" although he quickly added, "We think the airlines we've reviewed here are large and viable airlines." He said the airlines have enough cash for the next several quarters. But he is more concerned about later next year because some of that cash is likely to be gone, and because the relief on lending covenants won by... [read full story]