S&P's All Nippon Airways ratings unaffected

Standard & Poor's said its ratings on All Nippon Airways Co. Ltd. (BB-/stable) are unaffected by the company's equity finance plan, which it announced on Tuesday. The company plans to raise funds worth up to ¥109.5 billion through a public offering and third-party allocation of shares in domestic and overseas markets. The funds will be used for capital investment, including the purchase of airplanes.

The agency said it expects the equity finance plan will have a positive influence on the credit quality of All Nippon Airways, as it will lead to an increase in capital. Moreover, the company's intent to use the funds raised to invest in new, efficient airplane models is expected to improve the company's cost competitiveness over the medium-to-long term.

One of the goals in the company's medium-term plan through 2009 is to build a corporate structure that is less susceptible to economic and market fluctuations, and this equity finance plan will help the company to achieve this goal, S&P said.

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