Moody's rates United Continental notes Ba3

Moody's Investors Service said it assigned a Ba3 rating to the new senior unsecured notes due Jan. 15, 2025 that United Continental Holdings, Inc. will issue.

The new notes will be guaranteed by subsidiary United Airlines, Inc.

The proceeds will be used for general corporate purposes.

The Ba2 corporate family rating and stable outlook are unaffected by this issuance.

The ratings reflect United's competitive position in the global passenger airline industry, very good liquidity and credit metrics that remain within the range of expectations, Moody's explained.

The ratings also consider some expected weakening in 2018 because of higher-than-expected fuel costs and pressure on other operating expenses, the agency said.

The ratings also take into account projections of modest strengthening of credit metrics in 2019 as the company continues to realize revenue and earnings benefits, Moody's said.

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