S&P: Continental unaffected

Standard & Poor's said Continental Airlines Inc.'s (B/negative/--) announcement in a filing with the Securities and Exchange Commission that failure to achieve $500 million of labor cost concessions by the Feb. 28 target date "could ultimately result in the company having inadequate liquidity to meet its obligations" does not affect the ratings and outlook on the company.

Although Continental is unaffected, S&P said achievement of substantially all of the anticipated labor concessions is crucial to maintaining current ratings.

Management is in the midst of a campaign to persuade employees of the necessity of labor cost reductions, an effort that acquired further urgency with fare reductions triggered by Delta Air Lines Inc. on Jan. 5, according to S&P.

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