Fitch Rates United Continental's Sr. Unsecured Notes 'B-'

  Fitch Rates United Continental's Sr. Unsecured Notes 'B-'

Business Wire

CHICAGO -- November 4, 2013

Fitch Ratings has assigned a rating of 'B-/RR5' to United Continental
Holdings, Inc.'s (UAL) $300 million unsecured notes due 2020. Fitch currently
rates UAL and its primary operating subsidiary, United Airlines, Inc. at 'B'
with a Positive Outlook.

The $300 million unsecured notes have been issued by United Continental
Holdings, Inc., and are guaranteed by United Airlines, Inc. The new notes will
rank equally in right of payment with United Airlines' existing and future
unsecured debt. United expects to utilize the proceeds for general corporate
purposes.

The 'B-/RR5' rating is assigned based on Fitch's recovery expectations under a
scenario in which distressed enterprise value is allocated to various debt
classes. The 'RR5' (11% - 30% recovery) category reflects Fitch's expectations
that the United unsecured creditors would receive some principal recovery
after United's substantial secured indebtedness is satisfied. Some of United's
other unsecured obligations remain in the 'RR6' category reflecting either
contractual or structural subordination.

RATING SENSITIVITIES

Fitch generally views UAL's credit profile as improving; however, progress is
still required to warrant an upgrade of the IDR. A positive action could be
considered if the company were to improve its operating margins, exhibit
improving FCF, and continue to pay down debt. Fitch notes that United has
underperformed the industry in recent months in terms of traffic and operating
margins. Visible progress towards improving operating results and exhibiting
further merger related benefits would also be viewed as credit positives.

A negative rating action is not anticipated at this time, but potential
negative ratings triggers include a fuel or demand shock related to broader
macroeconomic issues, or further operational issues which constrain growth and
drive negative FCF.

Fitch has assigned the following ratings:

United Continental Holdings, Inc.

$300 million senior unsecured notes 'B-/RR5'

Fitch currently rates United as follows:

United Continental Holdings, Inc.

--IDR 'B';

--6% senior unsecured convertible notes due 2029 'CCC+/RR6'.

United Airlines, Inc.

--IDR 'B';

--Secured bank credit facility 'BB/RR1';

--Senior secured notes 'BB/RR1';

--Senior unsecured rating 'B-/RR5'

--Junior subordinated convertible debentures 'CCC+/RR6'.

Additional information is available at 'www.fitchratings.com'

Applicable Criteria and Related Research:

--'Corporate Rating Methodology' (Aug. 5, 2013);

--'Recovery Ratings and Notching Criteria for Nonfinancial Corporate Issuers'
(Nov. 13, 2012).

Applicable Criteria and Related Research:

Corporate Rating Methodology - Effective from 8 August 2012 - 5 August 2013

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=684460

Recovery Ratings and Notching Criteria for Non-Financial Corporate Issuers

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=693773

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=806990

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Contact:

Fitch Ratings
Primary Analyst:
Joe Rohlena, CFA, +1-312-368-3112
Associate Director
Fitch Ratings, Inc.
70 W. Madison Street
Chicago, IL 60602
or
Secondary Analyst:
Craig D. Fraser, +1-212-908-0310
Managing Director
or
Committee Chairperson:
Eileen Fahey, +1-312-368-5468
Managing Director
or
Media Relations:
Brian Bertsch, New York, +1 212-908-0549
brian.bertsch@fitchratings.com
 
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