R&I Cuts JAL's Credit Rating 3 Notches On Turnaround Concerns

TOKYO (Nikkei)--Japan Airlines Corp. (9205) saw its credit rating downgraded three notches, from B to CCC, by Rating & Investment Information Inc. after the airline turned to a government-backed entity for financial help Thursday.

R&I touched on the uncertainties over some aspects of the turnaround plan being drawn up, such as a reduction in pension liabilities, hinting that further downgrades are possible.

JAL has applied for rehabilitation assistance from the newly created Enterprise Turnaround Initiative Corp. of Japan.

(The Nikkei Oct. 31 morning edition)