S&P affirms UAL, United

Standard & Poor's said it affirmed its corporate credit ratings on UAL Corp. (B-/negative) and United Air Lines Inc. (B-/negative), and removed the ratings from Creditwatch, where it placed them with negative implications on July 22.

The agency said it took various rating actions, mostly upgrades due to substantial debt amortization and improved collateral coverage, on its ratings of United's pass-through certificates, and removed those ratings from Creditwatch.

"We based the ratings affirmation on Chicago-based UAL and subsidiary United on better near-term liquidity, which materially improves the company's prospects of avoiding financial distress this winter and benefiting from what appears to be the beginning of a gradual improvement in airline industry revenues," said S&P credit analyst Betsy R. Snyder.

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