NEW YORK (Standard&Poor's) Aug. 2, 2010--Standard&Poor's Ratings Services today assigned its 'BB-' rating and '1' recovery rating to Continental Airlines Inc.'s proposed $750 million senior secured notes, a 144A without registration rights. The '1' recovery rating indicates our expectation of very high (90% to 100%) recovery in a payment default scenario. We placed the 'BB-' issue-level rating on CreditWatch with negative implications, consistent with the CreditWatch implications of the Continental corporate credit rating. (We placed our ratings on Continental on CreditWatch May 3, 2010, following its announcement of an agreement to merge with UAL Corp.). "We base the 'BB-' rating and '1' recovery rating on the 'B' corporate credit rating on the company, as well as
