Qantas BBB+/A-2 ratings affirmed; BBB+ rating assigned to 1.4 bln aud loan: SP

HONG KONG (AFX-ASIA) - Standard & Poor's said it has affirmed its BBB+/A-2 ratings on Qantas Airways Ltd and assigned a BBB+ rating to the company's proposed 1.4 bln aud syndicated multicurrency bank loan due in 2006.	    S&P said the rating outlook on the company is stable.	    "The ratings on Qantas reflect its leading position in Australia's almost duopolistic domestic airline market, its strong position in Australia's inbound and outbound traffic routes, and its moderate financial policy.	    "Enhancing these positions is the company's 25 pct ownership by British Airways PLC, its membership of the one world global marketing alliance, andits other strategic alliances," S&P said in a statement received here.	    "These factors offset the small size of Qantas' markets (which exacerbates the airline industry's high operating leverage and cyclical returns) and the company's exposure to volatile fuel prices and exchange rates," S&P said.	    Although Qantas' domestic operation will remain under pressure, the rating outlook for the company is stable given that "its stable credit quality is expected to be sustained by its strong market position, focus on cost savings, and a solid earnings contribution from its international business", S&P said.	    "Also important is Qantas' commitment to moderate debt usage and, in particular, sustaining its existing leverage targets throughout its 4.6 bln usd 10-year fleet renewal program, which begins with the delivery of several Airbus 330 aircraft in fiscal 2002," S&P added.    

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