S&P lowers UAL

Standard & Poor's said it lowered its ratings on UAL Corp. and subsidiary United Air Lines Inc. (both rated B-/negative), including lowering the long-term corporate credit ratings on both entities to B- from B and removed the ratings from CreditWatch, where they had been placed with negative implications May 22, as part of an industrywide review.

The outlook is negative.

According to the agency, the downgrade reflects expected heavy losses and sharply reduced operating cash flow caused by high and volatile albeit recently somewhat reduced fuel prices.

S&P said it also lowered certain ratings on United enhanced equipment trust certificates, but selected debt issues were not lowered, due to improving collateral coverage that offset increased United default risk.

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