Moody's puts America West on upgrade review, rates convertibles Caa2

Moody's Investors Service put America West Airlines, Inc. on review for upgrade including its industrial revenue bonds at Ca and assigned a provisional Caa3 rating to its proposed $75 million guaranteed senior unsecured exchangeable notes. The enhanced equipment trust certificates are not covered by the review.

Moody's said the provisional rating assigned to the proposed convertibles reflects the benefits of the increased liquidity the completion of the offering will provide to the company.

The review will monitor the successful completion of the proposed offering as well as the company's overall liquidity including expectations of cash flow from operations and resulting unrestricted quarter end cash balances in the near term, and anticipated demands on cash over the course of the next 12 to 18 months including capital expenditures and material debt maturities during the first quarter of 2004, Moody's said.

Any rating action is expected to be limited to one ratings notch and will be contingent on the successful completion of the new bond being offered.

Moody's said the EETCs were not covered by the review because of continued weak demand for aircraft.

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