S&P boosts UAL, United

Standard & Poor's said it raised its corporate credit ratings on UAL Corp. and subsidiary United Air Lines Inc. to B from D, following confirmation of the companies' plan of reorganization.

The new long-term outlook is stable.

The B+ rating and 1 recovery rating on United's bank credit facility are not affected and are affirmed, the agency noted.

The revised corporate credit ratings reflect United's participation in the price-competitive, cyclical and capital-intensive airline industry and difficult industry conditions, characterized by high and volatile fuel prices and fierce competition from low-cost carriers in the U.S. domestic market, S&P said.

The ratings also reflect UAL's highly leveraged financial profile, the agency noted, adding these weaknesses are mitigated to some extent by United's extensive and well-positioned route system, which provides good revenue potential, especially on international routes and by reductions in labor costs and financial obligations achieved in bankruptcy.

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