QANTAS shares dropped earlier this week after they announced that they would be posting a $450 million dollar loss for the 2011/2012 financial year, a 91% loss from their earnings in the previous year.
While part of this is due to the braking into two arms, one side domestic the other international, their shares are losing more and more ground. As a result Standard and Poor have placed them on a ratings watch because their shares are edging closer to the $1 mark and if they don’t rebound soon, then their risk profile will weaken.
“In our view, Qantas’ international operations are a key factor to the group’s long term competitiveness,” S&P said in a statement.
If they are downgraded it will only be by one point, however, that could do even more damage to their already weakened position.
Shares are currently trading at $1.025.
