S&P gives Air Jamaica notes B

Standard & Poor's said it assigned its B rating to Air Jamaica Ltd.'s $150 million 9.375% notes due June 2015.

The rating on the Air Jamaica notes, which is equal to the long-term foreign currency rating on the sovereign, is based on the government's unconditional guarantee of both principal and interest payments.

Air Jamaica will use proceeds to pay trade creditors, undertake capital expenditures and meet working capital requirements, the agency said.

The sovereign credit ratings on Jamaica are constrained by a high general government debt burden, limited fiscal flexibility and vulnerability stemming from the island's geographical location and size, S&P said.

The ratings are supported by the island's improving fiscal and external liquidity position, the agency added.

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