Moody’s downgrades SAS credit rating one step

SAS credit rating has been under review by Moody's Investor’s Service since January 2005. As a result, SAS credit rating was today downgraded from B1 to B2 for the company’s “Senior Implied Rating,” corresponding to a one-step downgrade of the rating. The downgrade is mainly a result of the present overcapacity in the Scandinavian aviation market, a market where most of the airlines show negative results. Moody's acknowledges that the SAS Group has successfully reduced costs through Turnaround 2005 and that yields have stabilized the last months. Moody's still expects yield pressure in the short term. Moody's also has a positive view on the SAS Group's continued strong liquidity position and the ongoing program for capital releases. The downgrade does not affect any of the SAS Group's loans or credit facilities since they are not connected to Moody's rating. For further information Sture Stølen, VP, Head of SAS Group Investor relations + 46 8 797 1451