Qantas gets credit rating bump on market dominance, loyalty

Qantas' dominance of the local market and its profitable loyalty program have earned the airline a credit ratings upgrade from Moody's. Moody's upped its score for Qantas on Monday morning by one notch from Baa3 to Baa2, after taking "greater focus on qualitative factors". "This includes the unique traits of the Australian continent and airline market, Qantas Group's strong domestic position, and diversification provided by the loyalty program," Ian Chitterer, a Moody's vice president said. "We also factor in the reduction in credit risk through its hedging policy and financial framework. Working in tandem, they help to reduce earnings volatility and increase the predictability of managements response to market conditions." Moody's expected Qantas credit metrics to be fairly stable for the next 12 to 18 months, Chitterer said. <br/>