UAL, Continental downgraded by S&P

United Airlines parent UAL Corp. and Continental Airlines Inc. had their credit outlooks reduced to negative by Standard & Poor's because of rising jet-fuel prices and the weak economy. Both airlines kept long-term ratings of B, five steps below investment grade, even as the outlooks were cut from stable, S&P said Friday. Chicago-based UAL may post a 2008 pretax loss of more than $500 million, and Continental will report "materially worse" earnings and cash flow than in 2007 as the carriers spend more for fuel and business travel slows, S&P said.