S&P eyes developments on Hawaiian

S&P said it affirmed Hawaiian Holdings Inc.’s ratings and placed them on CreditWatch with developing implications. Previously, the outlook was stable.

On Sunday, Alaska Air Group Inc. announced it agreed to buy Hawaiian Holdings for an enterprise value of $1.9 billion.

“The developing outlook reflects our expectation that we would upgrade Hawaiian's ratings if the proposed acquisition by Alaska Air is successfully completed. On the other hand, it also continues to reflect the company's weak credit metrics and sizeable upcoming debt maturities, which could result in a downgrade if the transaction is unsuccessful,” the agency said in a statement.

S&P said if the deal goes through, it plans to equalize Hawaiian’s ratings with those of Alaska Air.

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