S&P Cuts UAL Rating Even Further

NEW YORK – Standard & Poor's (search) on Friday cut its ratings on US Airways Group Inc. (search) and its US Airways Inc. subsidiary, citing increasing risk that labor negotiations will not be completed in time to avoid default on a federally guaranteed loan.

S&P cut both entities' corporate credit ratings to a deeply speculative "CCC" from "CCC-plus." The outlook is negative, signaling that another downgrade is possible over the next two years.