S&P: US Airways unaffected

Standard & Poor's said US Airways Inc.'s (rated D) announcement of an agreement with the Air Transportation Stabilization Board, which guarantees a $700 million loan, allowing the airline to continue using its unrestricted cash through June 30 if the company meets certain covenants and other conditions, does not affect the D corporate credit ratings on the company.

S&P said the unrestricted cash is part of the collateral securing the loan, and loss of access to the cash would force liquidation of the company.

The D ratings on US Airways Inc. and its US Airways Group Inc. parent reflect the Sept. 12 bankruptcy filings by both entities, according to S&P.

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