Moody's raises JetBlue credit rating 1 notch

posted: 15 DAYS AGO

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NEW YORK -Moody's Investors Service raised its debt rating on JetBlue Airways Corp. by one notch on Tuesday because it stayed profitable during a tough year for airlines.

Moody's also cited JetBlue's "significantly improved liquidity," and changed its outlook to positive, from stable.

Moody's raised JetBlue's corporate family and probability of default ratings one notch to "Caa1." It also raised ratings on several other layers of JetBlue debt.

The "Caa1" rating reflects JetBlue's high debt and the airline sector's ongoing exposure to cyclical risks, Moody's said.

"While JetBlue demonstrated resilience in the current weak economic environment with reported profits during 2009, it will need to expand cash flow generation" to keep its credit intact, as large aircraft orders are set to resume more deliveries beginning next year.

JetBlue shares fell 2 cents to $5.60 in morning trading. It is set to report fourth-quarter and full-year results on Thursday.

2010-01-26 11:06:06