S&P cuts Qantas

Standard & Poor's said it lowered its corporate credit rating on Qantas Airways Ltd. to BBB-/A-3 from BBB/A-2.

The agency said it also lowered its senior unsecured debt ratings on Qantas to BBB- from BBB.

At the same time, the agency said it removed the ratings from CreditWatch with negative implications, where they were placed on June 7. The outlook is stable.

"The downgrade is driven by our view that Qantas' business risk profile has weakened, because of the structural pressures affecting the airline's international business. These persistent pressures have eroded Qantas' market share and inflicted losses on the airline's international operations in the past few years," S&P credit analyst May Zhong said in a news release.

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