S&P: British Airways unchanged

Standard & Poor's said its rating and outlook on British Airways plc (BB+/positive) remain unchanged following the announcement that net assets at March 31, restated under International Financial Reporting Standards, would be almost halved to £1.4 billion compared with the figure according to U.K. GAAP, the system under which British Airways currently reports.

The reduction in net assets results principally from the moving of the group's £1.4 billion post-tax pension deficit onto the balance sheet, S&P noted.

S&P said it does not expect application of IFRS to affect the group's ratings, since the pension deficit is already included as a form of debt in our credit analysis and will not therefore change its view on the group's capital structure

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