S&P ATA ratings remain on watch

Standard & Poor's said its ratings on ATA Holdings Corp. and its subsidiary, ATA Airlines Inc. (both CCC/watch developing/--), remain on CreditWatch with developing implications.

The CreditWatch update followed ATA Holdings Corp.'s Jan. 9 announcement that it had amended the terms of its exchange offers for its $175 million senior unsecured notes due August 2004 and $125 million senior unsecured notes due December 2005. Successful conclusion of the exchange offer, which is voluntary for bondholders, plus other actions to defer near-term cash obligations, should alleviate somewhat ATA's liquidity problems, the agency said.

S&P said ratings on ATA Holdings Corp. reflect uncertainty regarding payment of its 2004 debt maturities and lease payments, which the company is in the process of restructuring.

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