On April 18, 2008, Standard&Poor's Ratings Services revised its rating outlook on Continental Airlines Inc. (B/Negative/B-3) to negative from stable. We also placed our ratings on selected enhanced equipment trust certificates that are secured by regional jets on CreditWatch with negative implications. The negative outlook is based on the earnings and cash flow impact of rapidly increasing fuel prices and a weak U.S. economy. While Continental continues to report better operating results than its peer "legacy carriers," including a relatively modest $80 million first-quarter 2008 net loss, there is a clear risk of deterioration in its financial profile due to the very difficult airline industry outlook. The CreditWatch listing of selected enhanced equipment trust certificates reflects concerns that
