Moody's downgrades SAS credit rating one step and changes outlook rating to stable

Moody's downgrades SAS credit rating one step and changes outlook rating to stable The American credit rating company Moody's Investor's Service has today downgraded the SAS credit rating from Ba3 to B1 for the company's "Senior Implied Rating," corresponding to a one-step downgrade of the rating. Moody's has also changed the outlook rating from "Negative" to "Stable." The background to the change in prospects to "Stable" is that Moody's assesses that the SAS "Turnaround 2005" program is progressing as planned and is generating the promised results. Moody's also recognizes the strong support provided to SAS by the trade unions to implement the necessary changes in collective labor agreements. The credit rating company is also positive about SAS's limited future capital requirements and the company's current program for freeing up capital. Finally, Moody's assesses that the strong engagement of SAS Group Management in the process of change is positive. Among other factors, the background to the downgrade lies in the generally weak market for business travel and depressed prices, with increased competition and consequent overcapacity in the Scandinavian market, combined with a slightly weaker financial position. The SAS Group is in a situation with favorable liquidity and good access to unutilized committed lines of credit. The change in credit rating does not affect the SAS Group's existing loan portfolio. For further information Sture Stølen, Head of SAS Group Investor relations + 46 8 797 1451 SAS GROUP INVESTOR RELATIONS ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2004/05/27/20040527BIT00700/wkr0001.pdf