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Published on 3/31/2006 in the Prospect News Bank Loan Daily, Prospect News Convertibles Daily, Prospect News Distressed Debt Daily and Prospect News High Yield Daily.

Moody's gives US Airways loan B2

Moody's Investors Service said it assigned a B2 rating to the $1.1 billion secured credit facility of US Airways Group, Inc.

Additionally, Moody's said it upgraded selected tranches of certain Enhanced Equipment Trust Certificates supported by payments from US Airways Inc. and affirmed the remaining tranches.

Moody's said it also assigned a B3 corporate family rating at the parent level to America West Airlines, Inc. The outlook has been changed to stable.

Among the factors considered in the rating is the market position of the combined airlines, the agency said, noting that labor continues to be a significant obstacle to fully achieving the low cost structure.


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