Qantas says funding stays strong despite downgrade

AP News
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Posted: Jan 31, 2012 7:46 PM
Qantas says funding stays strong despite downgrade

Qantas Airways' credit rating has been downgraded, but the Australian company says it remains in a strong funding position.

Moody's Investors Service on Tuesday downgraded Qantas' rating from Baa2 to Baa3 _ the lowest investment grade rating.

Qantas issued a statement saying its financial position is secure. It says its operating cash flow has strengthened in the current financial year and that it has a cash balance of more than $3 billion. The company also said it can adjust capital investment as appropriate.

Qantas shares fell less than 1 percent to AU$1.57 ($1.66) in early trading on Wednesday on a slightly weaker Australian stock market.