BANGALORE (Thomson Financial) - Fitch Ratings said it has assigned a rating
of 'CCC-/RR6' to JetBlue Airways Corp.'s (JBLU) newly issued $175 million
convertible debentures due 2038 to repay JBLU's outstanding 3.5 percent
convertible notes due 2033.
The rating agency said the outlook for JBLU is negative.
Fitch said ratings on JBLU reflect the dramatic run-up in jet fuel costs and
growing evidence of a softening revenue outlook that will likely drive larger
losses and weakened free cash flow during the remainder of 2008.
Fitch said its 'B-' issuer default rating on JBLU reflects the company's
highly leveraged capital structure, its diminished cash flow generation capacity
and its vulnerability to ongoing fuel and revenue shocks in an industry that
remains unable to recover surging and largely uncontrollable energy costs
through higher fares.
TFN.newsdesk@thomson.com
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