S&P cuts Alaska Airlines ETCs to B+

Standard & Poor's said it lowered its ratings on Alaska Airlines Inc.'s 9.5% equipment trust certificates (ETCs) due April 12, 2012 to B+ from BB as part of an industry-wide review of aircraft-backed debt.

All other ratings on Alaska Airlines and parent Alaska Air Group Inc., including the BB- corporate credit ratings on both and B senior unsecured debt of Alaska Air, are affirmed. The outlook remains negative.

The lower rating on the ETCs reflects S&P's concern that repayment prospects for holders of aircraft-backed debt could suffer in a potential scenario of multiple, further bankruptcies of large U.S. airlines weakened by high fuel prices and intense price competition.

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