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Strategies & Market Trends : Roger's 1998 Short Picks -- Ignore unavailable to you. Want to Upgrade?

To: Ploni who wrote (2190)	2/3/1998 9:18:00 AM
From: Dale Baker	Respond to of 18691

From the story on the S&P rating. I'm told this is quite positive so I will not take a position today: Monday February 2, 6:24 pm Eastern Time Company Press Release Alaska Air Group Inc. & Unit Placed on WatchPos by S&P NEW YORK--(BUSINESS WIRE)--S&P's CreditWire 2/2/98--Standard and Poor's today placed its ratings on Alaska Air Group Inc. [NYSE:ALK - news] and its subsidiary, Alaska Airlines Inc., on CreditWatch positive (see list below). Approximately $290 million of rated debt is affected. The CreditWatch listing reflects Alaska Air Group's improved earnings and expected further balance sheet improvement due to anticipated conversion of debt to equity. Alaska Air Group reported record profits of $72.4 million in 1997, nearly double the $38 million it earned in 1996. In addition, on Jan. 29, 1998, the company announced it was calling for full redemption $132 million of convertible subordinated debt. The debt will likely be converted into equity due to the substantial difference between the conversion price ($33.60 a share) and the current market price (around $50 a share). As a result, Alaska Air Group's lease-adjusted debt leverage will decline to around 70%, a fairly good level for an airline.