Shares in Qantas have hit a record low, days after the airline’s credit rating was downgraded to “junk” status.
The national carrier’s share price has closed at 96.5 cents, after dipping as to as low as 95.5 cents earlier in the day.
The value of Qantas stock has fallen by almost 25 cents in the days since it announced it is expecting a pre-tax loss of up to $300 million in the first half on this financial year.
It also announced plans to axe about 1,000 jobs over the next 12 months.
The share price dropped by 3 per cent today.
On Friday, the global ratings agency Standard and Poor’s downgraded the airline’s credit rating to sub-investment grade, known in financial markets as “junk” status.
The previous low in the airline’s almost 18 years of trade on the share market was 97 cents, recorded in August last year.
Friday’s credit rating downgrade could make it more expensive for Qantas to borrow money, and sends a warning to investors about its capacity to repay its debts.
The Prime Minister Tony Abbott has ruled out extending financial support to Qantas.