Qantas Credit Downgrade Sparks Call For Government Action
Qantas has again called for political reform in response to the latest downgrading of its credit rating. (Photo: Airbus)
Qantas has again called for political reform in response to the latest downgrading of its credit rating. (Photo: Airbus)

The January 9 decision by Moody’s Investor Service to downgrade the credit rating of Qantas Airways to Ba2 (from Baa3) has prompted fresh calls for the Australian government to provide emergency debt guarantees for the country’s flag carrier. The move, which followed Standard & Poor’s downgrading of Qantas in December and confirms its debt rating as “junk” status, has also spurred new demands for the government to remove restrictions that currently cap foreign investment in the airline at no more than 49 percent of its equity.