20-Jan-2010 8:43 AM

CDO ratings not affected by Japan Airlines bankruptcy: Fitch Ratings

Fitch Ratings stated (19-Jan-2010) the bankruptcy filing by Japan Airlines (JAL)  will not impact the ratings of corporate synthetic collateralized debt obligations (CDOs). [more - Fitch Ratings] Standard & Poor's Ratings Services, meanwhie, has lowered a long-term corporate credit rating for Japan Airlines Corp from ‘selective default’ to a ‘default status following the bankruptcy announcement (Kyodo News/Bloomberg, 19-Jan-2010). S&P announced the same rating action for JAL's key subsidiary, Japan Airlines International Co. Moody’s Investors Service, meanwhile, has maintained its ‘Ca’ rating, but stated it continues to monitor the situation.

Moody’s: “We didn’t predict this type of legal bankruptcy filing for a company that was receiving public support. This change of what the government support should be will be reflected in the ratings of the airline industry in future,” Mina Sawamura, analyst. Source: Bloomberg, 19-Jan-2010.

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