Qantas has not paid a dividend since 2009 but after a corporate restructure, a return to profitability and repayment of some debt, the airline has regained some of it investment lustre by regain its “investment grade” credit rating. The rating agency Standard & Poors has upped the company’s credit rating from BB+ to BBB-, the lowest investment grade credit rating in the S & P definitions. While the BBB- rating increase is just one notch higher, debt with ratings of BB+ and lower are considered to be “junk bonds” while anything with a BBB- and higher rating is investment grade.
Even having this rating makes it a standout among the world’s airlines. There are only five others in the world with an investment grade credit rating. Having the BBB- rating can be the difference between investors and financial institutions who buy corporate debt being allowed (or not) by their investment mandates to buy Qantas debt.