Japan Airlines Corp’s long-term corporate credit rating was cut from “CC” to “selective default” by Standard & Poor’s, which stated the carrier missed payments on some of its bank loans (Bloomberg/Reuters, 02-Dec-2009). The ratings agency stated it saw the airline's agreement with creditors to suspend some repayments as part of its debt restructuring efforts as a default. S&P maintained JAL’s senior unsecured debt rating at “CCC” and on CreditWatch with developing implications.
Standard & Poor’s: “Based on agreement with these creditors, the company then ceases payments on certain obligations for a period of negotiation. We understand that this agreed suspension of debt payments may not legally constitute a default. Based on Standard & Poor’s criteria, however, we view it as a default,” Company Statement. Source: Bloomberg, 02-Dec-2009.