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British Airways' long-term corporate credit rating lowered

9-Feb-2010 4:19 PM

British Airways' long-term corporate credit rating was lowered from ‘BB’ to ‘BB-’ by Standard & Poor's Ratings Services, citing the possibility of strike action by its cabin crew, BA’s earnings outlook and the “uncertainty” surrounding its pension deficit (Bloomberg/MarketWatch, 08-Feb-2010). S&P’s outlook for BA is 'negative'.

Standard & Poor's Ratings Services: "The downgrade reflects our view that the very difficult industry conditions in 2009 have resulted in a significant deterioration in the group's financial profile, and that recovery to a level which we consider commensurate with a 'BB' rating for BA is unlikely in the near term," Statement. Source: MarketWatch, 08-Feb-2010.