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United bankruptcy could lead to ratings downgrade. (News Briefs).(United Airlines' bankruptcy could negatively impact airports' tax-exempt bonds )(Brief Article)

Government Finance Review

| February 01, 2003 | COPYRIGHT 2003 Government Finance Officers Association. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

United Airlines' Chapter 11 bankruptcy filing could eventually lead to a credit rating downgrade on tax-exempt bonds issued for United's hub airports. Although the bankruptcy filing does not itself pose a default risk to airport bonds, Fitch Ratings pointed our that the airline's forced reorganization could put downward pressure on the bond ratings. This reorganization will likely entail service cutbacks at United hubs as the airline attempts to cut costs. Since the municipal bonds are revenue bonds, the ...

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Source: HighBeam Research, United bankruptcy could lead to ratings downgrade. (News...

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