S&P lifts British Airways from junk

Standard & Poor's said it raised its long-term corporate credit rating on British Airways plc to BBB- from BB+, propelling the U.K. airline to investment-grade status. S&P also said it raised its long-term rating on its senior unsecured debt to BB+ from BB-.

The outlook is stable.

The upgrade follows the company's good progress in strengthening its financial profile and the agency's expectations of improving operational performance, S&P said.

All ratings were removed from CreditWatch, where they were placed with positive implications in January. Despite a challenging trading environment, S&P said it expects the structural cost savings achieved and the benefits of the transfer of British Airway's operations to a new terminal to help maintain its profitability and provide support for its financial profile.

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