S&P Global Ratings assigned a 'BB+' issue-level rating to United Airlines Holdings Inc.'s proposed series of senior unsecured notes. The notes mature in 2031.
The rating agency also provided a '3' recovery rating. This suggests bondholders can expect a meaningful recovery of 50% to 70% in a default scenario.
The new debt will rank equally with the company's other senior unsecured debt. S&P states the offering demonstrates increased financial flexibility but does not materially change the company's overall credit profile.
United intends to use the proceeds from the notes for general corporate purposes. This may include future debt repayment.