usair_begins_with_u
Veteran
- May 9, 2004
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USA320Pilot said:I do not share your pessimism and apparently the financial community does not either.
Hmmm.. Last I checked, Moody's is a pretty big player in the finacial community, and this is thier opinion:
NEW YORK, May 20 (Reuters) - Moody's Investors Service on Friday revised the outlook on America West Airlines Inc.'s debt ratings to negative from stable, and US Airways Inc. to developing from stable, on their potential merger. The merger would take place after US Airways emerges from bankruptcy. An outlook revision to negative signals a ratings downgrade is more likely over the next 12 to 18 months.
Moody's said the two companies combined would continue to face a difficult operating environment. Moody's currently rates America West's senior unsecured debt at "Caa2."
Caa2 is non investment grade debt.. Also known as "Junk"
You're a smart guy... Yes the merger extended the immediate life of US-Airways, and thats a good thing for all U employees... no one will deny that! But, you also have to realize there still lies tremendous risks ahead, and truthfully it's not even a done deal yet.
I hope everything works out for the best, but that doesn't cloud the realities that HP/U is not even close to some 'sure thing'. Its always prudent to be cautious.