United Airlines bonds downgraded deeper into junk by S&P – MarketWatch

S&P Global Ratings late Thursday downgraded United Airlines Holdings Inc.
UAL,
-7.25%
debt one notch to B+, from BB-, saying it expects the airline to generate “substantial cash flow deficit,” thanks to a “steep decline” in bookings due to the COVID-19 pandemic. A return to positive cash flow is expected next year, S&P said. United is taking several steps to offset the fewer bookings, but these will not be enough, it said. “As of now, we expect air traffic to begin to recover in the second half of 2020, but any delay will prolong weakness in credit metrics,” the ratings agency said. United shares fell 0.5% in the extended session Thursday after ending the regular trading day down 7.3%.