Moody's ups United Air Lines

Moody's Investors Service said it affirmed all debt ratings, including the B2 corporate family and probability of default ratings, assigned to United Continental Holdings, Inc. and to its subsidiaries, Continental Airlines, Inc. and United Air Lines, Inc.

At the same time, Moody's upgraded the rating on the 12% second-lien notes of United due November 2013 to B2 from B3, and transferred the SGL-2 speculative grade liquidity rating to United Continental from United.

The outlook is stable.

Moody's said the upgrade reflects changes to the loss given default waterfall such that unsecured debt and unsecured claims now account for an increasing proportion of the total obligations modeled therein, resulting in the up-notching of the rating on the second-lien obligation.

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