S&P: Northwest on watch

Standard & Poor's said it placed its ratings, including the B+ long-term corporate credit rating, on Northwest Airlines Corp. on CreditWatch with negative implications, following announcement of a merger agreement with Delta Air Lines Inc. (B/Watch positive).

The CreditWatch listing affects enhanced equipment trust certificates with various ratings, excepting those that are insured by a bond insurer, the agency said, noting that its listing of Northwest ratings on CreditWatch with negative implications and those of Delta on CreditWatch with positive implications implies that it foresees a corporate credit rating of either B or B+ for the combined entity.

The proposed merger is subject to approval by Northwest and Delta shareholders and will be subject to antitrust review by the U.S. Department of Justice and approval by various other regulators, the agency noted.

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