22 Feb 2009

Moody's lowers Qantas rating

7:23 am on 22 February 2009

Moody's Investor Service has downgraded the credit rating for Qantas due to falling profits at the airline amid a decline in demand for travel.

Qantas shares fell 7.5 cents, or 4.29 per cent, to $A1.675 on Friday after Moody's downgraded its long-term investment grade rating from Baa1 to Baa2 with a stable outlook.

Qantas chief executive Alan Joyce said the aviation sector was experiencing a high degree of volatility worldwide and Qantas has had to confront that.

He said Qantas is one of the few airlines in the world with an investment grade credit rating.

Earlier this month, Qantas posted a fall of 66% in first half net profit to $A210 million compared to the first half last year.