S&P lowers Global Aviation

Standard & Poor's said it lowered its ratings on Global Aviation Holdings Inc. The corporate credit rating was lowered to CCC- from CCC and the issue rating on the senior secured debt was lowered to CCC- from B-.

The ratings remain on CreditWatch, but the agency said it revised the implications to negative from developing. The agency also revised the recovery rating to 3 from 1 based on lower expectations for recovery in a payment default scenario.

S&P said the downgrade reflects Global Aviation's very tight liquidity position following several quarters of weak operating performance, and the agency's expectation that liquidity will not materially improve.

"We believe the company could default, absent some type of liquidity-enhancing transaction, over the coming year," said S&P rating analyst Lisa Jenkins in a news release.

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