Moody's ups America West

Moody's Investors Service said it upgraded the senior implied rating assigned to America West Airlines Inc. to B3 from Caa1 and its ratings of the company's senior unsecured debt obligations to Caa2 from Caa3.

The outlook is stable.

Moody's said the rating action reflects the company's improved operating performance as the losses experienced during 2001 and 2002 have been stemmed, as well as the prospects for some further improvement in operations as the economy strengthens. The ratings also consider the company's greater ability to generate cash from operations and support its current adequate liquidity profile.

Nevertheless, Moody's noted that the company's overall risk profile remains high due to elevated financial leverage, limited access to alternate liquidity beyond its current cash balances, and a difficult revenue environment due to aggressive competition and weak demand.

Moody's also upgraded the senior unsecured issuer rating to Caa2 from Caa3, the senior unsecured rating to Caa2 from Caa3. Ratings of the Enhanced Equipment Trust Certificates were changed as follows: Series 1996-1, Class A confirmed at Ba1, Class B confirmed at B1, Class C upgraded to B2 from B3, Class E withdrawn due to full payment of principal; Series 1997-1: Class A confirmed at Ba1, Class B confirmed at B2; Series 1998-1: Class A confirmed at Ba1, Class B confirmed at Ba3, Class C upgraded to B2 from B3; Series 1999-1 Class C upgraded to B2 from B3; Series 2000-1 Class C upgraded to B3 from B3; Series 2001-1: Class C upgraded to B2 from B3 and Class D upgraded to B3 from Caa2.

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