S&P cuts SAS outlook to negative

Standard & Poor's said it revised its outlook on SAS AB to negative from stable, reflecting increased pressure on the group's financial profile from additional costs relating to the grounding and permanent withdrawal from operations of its fleet of Bombardier Dash 8-400 aircraft.

At the same time, the BB long-term corporate credit rating on SAS was affirmed, the agency said.

After three nonfatal accidents in two months, SAS announced its decision to permanently remove its entire fleet of Q400 aircraft from operations, S&P noted.

The agency said that the outlook revision reflects its expectation that the additional costs will place pressure on the group's ability to comply with our adjusted debt-to-EBITDA target of 4x at year-end.

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