Originally Posted by
V-Jet
RD: I have to take issue with this statement of yours as according to correspondence today it is factually incorrect.
S&P Global ratings is no longer including Qantas at Qantas’ request. So at least as far as S&P’s ratings are concerned, they are certainly no longer bought and paid for. Although, with both those 787’s to pay for as well as Napoleon’s salary, perhaps the issue was in the paying??
That the ratings agencies are stock exchange listed entities and companies pay them to rate their equity the rating system is akin to stars on junior's drawing, sitting proudly on the family refrigerator.
That S&P are now calling the obvious and passing comment on poor and declining fleet metrics, given the 'fee for service' is suggestive that they believe that the term structure of the debt required for an eventual re-equipment puts even the current rating at risk.
Fair point though, Little Napoleon is expensive ballast.