S&P warns of 'tough' international conditions for Qantas

Standard & Poor's stated trading conditions for Qantas' international division will remain "tough", warning that Qantas' BBB credit rating is coming under pressure as a result (AAP/The Australian Financial Review, 24-Jun-2011). S&P has not changed its rating of Qantas' debt or its "negative" outlook following the airline's profit warning this week. Increasing competition in international markets, combined with high fuel prices, is increasing uncertainty about Qantas' 2012 performance, which is expected to be weaker than the current financial year.