Air Jamaica Ratings Lift Off

S&P has upgraded Air Jamaica’s ratings to B minus from CCC and removed them from credit watch developing. The outlook is stable. The upgrade comes after the government of Jamaica announced it would assume the airline’s debt of $533m following its sale to Trinidad & Tobago-based peer Caribbean Airlines (CAL). As part of the deal, CAL will finance Air Jamaica’s operations for a transition period of up to a year. Afterward, Air Jamaica will cease to provide air services, and CAL will take over its routes.