Japan Airlines, seeking its fourth state bailout since 2001, completed a record weekly drop in Tokyo trading and was downgraded two levels by Standard & Poor's on concern it may issue new shares to pare debts.

The airline, known as JAL, fell 11 percent for a second day to close at 101 yen, extending losses for the week to 26 percent. S&P cut its long-term debt rating to B-, six grades below investment level. Moody's Investors Service also downgraded a unit of the carrier.

A government-appointed panel restructuring JAL may seek debt forgiveness from banks and debt-for-equity swaps or, possibly, bankruptcy, according to S&P. JAL may also scrap plans to sell stakes in units including leisure carrier JALways, from which it expected to raise a 90 billion yen ($990 million) profit, Kyodo said late Thursday.

Join the discussion

The Miami Herald is pleased to provide this opportunity to share information, experiences and observations about what's in the news. Some of the comments may be reprinted elsewhere in the site or in the newspaper. We encourage lively, open debate on the issues of the day, and ask that you refrain from profanity, hate speech, personal comments and remarks that are off point. In order to post comments, you must be a registered user of MiamiHerald.com. Your username will show along with the comments you post. Thank you for taking the time to offer your thoughts.

     Showing: Oldest first Newest first Most-recommended first Least-recommended first

@Nyx.AuthorDisplayName@ wrote on @Nyx.PostedAtTime@:

@Nyx.repliedToText@

@Nyx.replyAnswerText@

Reply to this Comment @Nyx.Recommender@ @Nyx.AbuseReporter@