- Five Economic Challenges Ahead For Obama
- Demise of Australia's Allco a Sign of More to Come
- The New Investment World: Together and Separate
- JPMorgan to Close Prop Desk, Lay Off Traders: Source
- Australian Government Faces Up to Grim Reality
- Stocks Rise as Asia Awaits US Election Outcome
- Bogle: Market Fundamentals Have 'Improved Radically'
- Dell Taking Further Steps To Cut Staff and Costs
- Marvel Posts Marvel-ous Profits, Sees Modest 2009
- Valliere: Can Obama Permanently Jump-start Confidence?
- At McCain Headquarters -- Johnny Cash!
- Time to Move to the Lawn
- Obama Appears and ... Nothing
- Lightning Round: Cisco, Morgan Stanley, Bristol-Myers and More
- Cramer's Outrage: The U.S. Treasury
- Cramer's Case for CAT
- Your First Move For Wednesday November 5th
- Why Staples Is the Superior Stock
- Obama victory helps unions, auto companies
- Potlatch to take downtime at 5 plants
- Capital Southwest mulls options for Lifemark Group
- HealthSouth lifts profit forecast for 2008
- HealthSouth 3Q earnings slide on year-earlier gain
- Philippine inflation eases for 2nd straight month
- Global Payments sets 2-cent quarterly dividend
- Princeton National sets 28-cent quarterly dividend
- Energy XXI sets 0.5-cent quarterly dividend
- ProLogis sets 51.75-cent quarterly dividend
Text Size 
NEW YORK - Fitch Ratings on Friday affirmed its debt ratings for Delta Air Lines Inc. following the closing of its acquisition of Northwest Airlines Inc. on Wednesday.
Fitch has Delta's Issuer Default Rating at "B," first-lien senior secured credit at "BB/RR1" and second-lien secured credit at "B/RR4." All are non-investment or junk grade.
Fitch assigned an Issuer Default Rating of "B" and Secured Bank Credit rating of "BB/RR1" to Northwest Airlines, which is now a Delta subsidiary.
"The 'B' rating reflects Fitch's view that the merged carrier's heavy debt and lease load, sizable fixed financing obligations and ongoing vulnerability to fuel price and air travel demand shocks keep its overall credit profile weak," the ratings agency said in a release.
Fitch also noted the recent drop in fuel prices has helped the combined carrier's cash flow, but fuel hedges arranged when the price of oil was much higher in the beginning of the year will force Delta to post substantial amounts of cash collateral to cover those contracts.
Delta shares rose $1.45, or 15.2 percent, to $11 in afternoon trading as the broader market rose and oil prices declined.
Print
Email
Del.icio.us
Digg It
Data is a real-time snapshot *Data is delayed at least 15 minutes