Standard & Poor’s downgrades Northwest’s rating

Standard & Poor’s downgrades Northwest’s rating    Standard & Poor’s, the New York-based investment rating service, Tuesday lowered its ratings on Northwest Airlines Corp. and its subsidiary airline Northwest Airlines Inc. to 'CCC-' from 'CCC+.'
   “Northwest is managing through a strike by its mechanics well, but dramatically increased fuel expense and delays in securing needed concessions from other unions have deepened losses and are eroding its liquidity,” said Standard & Poor’s credit analyst Philip Baggaley.
   “The company foresees a loss of $350 million to $400 million in the third quarter, normally its strongest period, and unrestricted cash had declined to $1.7 billion at Aug. 31, from $2.14 billion at June 30, 2005,” Baggaley added.
   In August, Standard & Poor’s placed both Northwest entities on CreditWatch with negative implications, reflecting a very high risk of near-term bankruptcy.