S&P: British Airways unchanged

Standard & Poor's said its rating and outlook on British Airways plc (BBB-/negative) remain unchanged following the announcement that it was holding talks with Iberia, with a view to an all-share merger between the two companies.

It is expected that it will take several months to reach agreement on the terms of the merger, the agency noted.

According to S&P, the proposed tie-up with Iberia is beneficial to British Airways' business profile as it will strengthen its network coverage, particularly in Latin America and increase its level of diversification in long-haul markets, which are highly reliant on North American routes.

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