SYDNEY (AP) Qantas Airways' credit rating was downgraded to junk status Friday, one day after the beleaguered Australian carrier said it would slash 1,000 jobs and suffer half-year losses of at least 250 million Australian dollars ($225 million).
Standard & Poor's cut the airline's rating to BB+, which is below investment grade, citing the airline's losses.
"A downgrade was not unexpected," Qantas chief financial officer Gareth Evans said in a statement. "It highlights the unprecedented pressures that the Qantas Group is facing from several external forces but particularly from an uneven playing field in the Australian aviation market."
Qantas is hoping that regulators will throw it a lifeline by easing restrictions that currently limit foreign ownership in the airline to 49 percent. Rival airline Virgin Australia is not subject to the same restrictions.
On Thursday, Qantas said it expects to post pre-tax losses of between AU$250 million and AU$300 million for the six months ending Dec. 31, due to lower demand, a strong Australian dollar and steep fuel costs.
