The 'B' long-term corporate credit rating on Continental Airlines Inc. reflects its participation in the high-risk airline industry and a heavy debt and lease burden, but also better-than-average operating performance among its peer large U.S. hub-and-spoke airlines. Houston, Texas-based Continental, the fourth-largest U.S. airline, serves markets mainly in the southern and eastern U.S. from hubs at Houston; Newark, N.J.; and Cleveland, Ohio. International routes serve the central Pacific, selected Asian destinations, Latin America, and Europe. Continental's route system is more balanced among these various markets (2006 passenger revenue was derived 61% from domestic operations, 18% Europe, 13% Latin America, and 8% Pacific) than those of other large U.S. airlines, reducing risk somewhat. Continental has a substantial debt and lease burden,
