S&P upgrades SAS

S&P said it raised the long-term corporate credit rating on SAS AB to B+ from B.

The outlook is stable.

The upgrade follows a period of improving credit metrics for SAS and reflects an expectation that the company will be able to sustain the financial risk profile, S&P explained.

The company's business profile continues to reflect the its exposure to the cyclical, fragmented and highly capital-intensive European airline industry, the agency said.

It also considers its higher cost position compared with peers, S&P said.

Management's focus is on improving the company's competitive position, as evident from its cost-saving plan, the agency noted.

Its well-known brand and high market share among its target customer group in Scandinavia partly offset its higher cost positon, S&P added.

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