S&P Lowers its Credit Rating on Southwest
There are three credit rating agencies—Moody’s, Standard & Poor’s (S&P), and Fitch—which regularly assess debt and credit risks. S&P announced yesterday that they are lowering Southwest Airlines’ credit rating from A- to the next level, BBB+. Their decision was based on volatile fuel prices and overall economic weakness impacting demand for domestic travel. S&P also acknowledged that we have some cost pressures, and that the industry as a whole is struggling.
The S&P rating is “stable,” which is positive—given what’s going on in the economy. Southwest is still considered to be “investment grade” at a BBB+ rating, and we are currently the only investment grade airline.
