The Qantas Group says its financial position is still strong despite risk management company, Moody’s downgrading the carrier’s credit rating late yesterday.

In a statement to shareholders, the carrier reassured that its rating still remains stable, being only one in two airlines to be rated in the investment-grade.

Australian’s flag carrier noted its operating cashflow continues to strengthen its position although the market over the past year has proved challenging with fuel prices reaching 2008 highs, as well as economic instability in Europe affecting its global travel services.

“...the Qantas Group remains in a strong funding position,” the carrier said with a cash balance sitting above $3 billion.

“The Group has mandated financing in place for its 2011/12 aircraft deliveries and intends to fund the balance of its future capital commitments from operating cashflow, cash reserves and available debt.”

In terms of future strategies, Qantas noted that the extent of its business places the airline in a flexible position to manage disruptions and economic instability.

“The Group has a clear strategy for the future, based on its strong domestic airline businesses, turning around Qantas International, the continued growth of Qantas Frequent Flyer and targeted expansion in Asia,” the statement read.