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November 27, 2007 |
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JAPAN AIRLINES: Selects 5 Preferred Bidders for JALCard Kyodo News reported that Japan Airlines Co. chose Mitsubishi UFJ Financial Group Inc., Credit Saison Co. and three other unidentified financial firms as preferred bidders for a stake in JALCard Inc., according to Mari Murayama of Bloomberg News. JAL will hold a second screening by the end of March, Kyodo related citing people familiar with the selection process, Bloomberg reported. As reported by the Troubled Company Reporter-Asia Pacific on Nov. 13, 2007, Mitsubishi UFJ Financial Group, Inc., and Credit Saison Co. were expected to bid for the shares. The TCR-AP reported on September 19, 2007, that JAL wants to unload 49% of its stake in JALcard, which is estimated to have a market value of about JPY100 billion, because it wants to use the proceeds to help it focus on core flight service operations and to help reduce debts. Tokyo-based Japan Airlines International Company, Limited -- http://www.jal.com/en/ -- was created as a result of the merger of Japan Airlines and Japan Air Systems to boost domestic coverage. Japan Airlines flies to the United States, Brazil and France. * * * Standard & Poor's Ratings Services affirmed its 'B+' long-term corporate credit ratings on Japan Airlines Corp. and the company's 100% subsidiary, Japan Airlines International Co. Ltd., and removed them from CreditWatch, where they were placed with negative implications on May 25, 2007. The 'B+' senior unsecured debt ratings on both companies were also affirmed. The rating actions reflect the diminished likelihood of a material change in financial institutions' credit stance toward JAL, at least over the short term, given JAL's steady business performance since the beginning of the current fiscal year, and a smaller concern about the short-term liquidity. The outlook is negative. The TCR-AP reported on Oct. 10, 2006, that Moody's Investors Service affirmed its Ba3 long-term debt ratings and issuer ratings for both Japan Airlines International Co., Ltd and Japan Airlines Domestic Co., Ltd. The rating affirmation is in response to the planned restructuring of the Japan Airlines Corporation group on Oct. 1, 2006 with the completion of the merger of JAL's two operating subsidiaries, JAL International and Japan Airlines Domestic. JAL International will be the surviving company. The rating outlook is stable. Fitch Ratings Tokyo analyst Satoru Aoyama said that the company's debt obligations and expenses for new aircraft have placed it in an unfavorable financial position. Fitch assigned a BB- rating on the company, which is three notches lower than investment grade. |
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