http://www.marketwatch.com/story/fitch-lowers-deltas-credit-rating-to-b?siteid=yhoof2
NEW YORK (MarketWatch) -- Fitch Rating lowered its debt rating for Delta Air Lines (DAL 5.74, +0.04, +0.70%) on Thursday to B- from B to reflect erosion in the Atlanta carrier's cash flow. "Despite large 2009 cost savings driven by the sharp decline in jet fuel prices from last summer's peak, Fitch expects Delta to report another year of substantially negative free cash flow in 2009 as the airline struggles to adjust capacity to a diminished level of demand," the ratings agency said. Delta's unrestricted liquidity of more than $5 billion may provide a bigger safety net compared to other legacy carriers, but steady erosion of its cash balance since last fall will make it more difficult to the airline to meet obligations, the firm said.
NEW YORK (MarketWatch) -- Fitch Rating lowered its debt rating for Delta Air Lines (DAL 5.74, +0.04, +0.70%) on Thursday to B- from B to reflect erosion in the Atlanta carrier's cash flow. "Despite large 2009 cost savings driven by the sharp decline in jet fuel prices from last summer's peak, Fitch expects Delta to report another year of substantially negative free cash flow in 2009 as the airline struggles to adjust capacity to a diminished level of demand," the ratings agency said. Delta's unrestricted liquidity of more than $5 billion may provide a bigger safety net compared to other legacy carriers, but steady erosion of its cash balance since last fall will make it more difficult to the airline to meet obligations, the firm said.