S&P affirms US Airways, off watch, gives notes CCC

Standard & Poor's said it affirmed various ratings, including the B- corporate credit rating, on US Airways Group Inc. and all its subsidiaries, US Airways Inc., America West Holdings Corp. and America West Airlines Inc., and removed them from CreditWatch, where they had been placed with negative implications.

The agency said ratings on US Airways' noninsured enhanced equipment trust certificates were raised and removed from CreditWatch with positive implications while a CCC rating was assigned to US Airway Group's $125 million 7% convertible notes due 2020.

S&P said the ratings actions are based on the credit quality of the combined US Airways and America West entities after their Sept. 27 merger and the new merged US Airways benefits from improved liquidity and a broader route network, but still faces significant challenges.

The outlook is negative.

S&P added the ratings on US Airways Group reflect potential labor integration problems in combining America West Airlines and US Airways after the September merger, the inherent high-risk profile of the U.S. airline industry and a still substantial debt burden.

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