Australian airline, Qantas, has had its credit rating downgraded to "junk" - below-investment - level, by the ratings agency Standard & Poor's (S&P).
The downgrade could increase the airline's borrowing costs and sends a warning to investors.
The move by S&P comes after the airline issued a surprise profit warning and announced 1,000 job cuts last Thursday.
The carrier expects to make losses in the July-to-December period.
S&P said the rating cut reflected its view that intense competition in the airline industry has weakened Qantas' business risk profile to fair from satisfactory, and financial risk profile to significant from intermediate.
It lowered the carrier's rating from the lowest investment grade, BBB-, to BB+.
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