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Reuters
S&P may still cut US Airways Groups ratings
Tuesday April 20, 11:25 am ET
(The following statement was released by the ratings agency)
NEW YORK, April 20 - Standard & Poor's Ratings Services said today that its ratings remain on CreditWatch review for a possible downgrade following the resignation yesterday of the president and CEO of US Airways Group Inc. (B-/Watch Neg/--), David Siegel. Bruce Lakefield a member of the company's board of directors, succeeded Mr. Siegel.
"Mr. Siegel's resignation, which was not unexpected, was apparently due to unwillingness of the airline's unions to consider further labor cost concessions without a change in senior management, a situation that has become common in the airline industry over the past year," said Standard & Poor's credit analyst Philip Baggaley. "In addition, Mr. Siegel's employment contract allowed him to receive a substantial termination payment if he resigned during April 2004."
Standard & Poor's ratings on US Airways Group Inc. and its US Airways Inc. subsidiary (both B-/Watch Neg/--), which were lowered to current levels Jan. 9, 2004, remain on CreditWatch with negative implications, where they were placed on Dec. 10, 2003. Standard & Poor's plans to conclude its review of the company over the next several weeks.
Bruce Lakefield, a retired Lehman Brothers executive, has been chairman of the board's finance and strategy, and human resources committees and actively involved in the company's efforts to restore its financial health. David Bronner (News) , head of the investment fund that owns a controlling interest in US Airways Group, remains chairman of the company.
S&P may still cut US Airways Groups ratings
Tuesday April 20, 11:25 am ET
(The following statement was released by the ratings agency)
NEW YORK, April 20 - Standard & Poor's Ratings Services said today that its ratings remain on CreditWatch review for a possible downgrade following the resignation yesterday of the president and CEO of US Airways Group Inc. (B-/Watch Neg/--), David Siegel. Bruce Lakefield a member of the company's board of directors, succeeded Mr. Siegel.
"Mr. Siegel's resignation, which was not unexpected, was apparently due to unwillingness of the airline's unions to consider further labor cost concessions without a change in senior management, a situation that has become common in the airline industry over the past year," said Standard & Poor's credit analyst Philip Baggaley. "In addition, Mr. Siegel's employment contract allowed him to receive a substantial termination payment if he resigned during April 2004."
Standard & Poor's ratings on US Airways Group Inc. and its US Airways Inc. subsidiary (both B-/Watch Neg/--), which were lowered to current levels Jan. 9, 2004, remain on CreditWatch with negative implications, where they were placed on Dec. 10, 2003. Standard & Poor's plans to conclude its review of the company over the next several weeks.
Bruce Lakefield, a retired Lehman Brothers executive, has been chairman of the board's finance and strategy, and human resources committees and actively involved in the company's efforts to restore its financial health. David Bronner (News) , head of the investment fund that owns a controlling interest in US Airways Group, remains chairman of the company.
