Moody’s lifts British Airways from junk

Moody’s Investors Service said it assigned a Baa3 long-term issuer rating to British Airways plc and withdrew the company’s Ba2 corporate family rating and Ba2-PD probability of default rating.

Moody’s also said it upgraded British Airways Finance (Jersey) LP’s preference stock ratings to Ba2 from B1 and British Airway’s senior unsecured rating to Baa3 from Ba3.

The outlook is stable.

The upgrades reflect the company’s material earnings improvement in 2015 and an expectation of a further increase in its operating profit this year, Moody’s said.

The company’s financial profile has improved over a number of years and is expected to continue strengthening based on its stronger competitive profile, sustained improvements of the company’s cost position and demonstrated resilience to external shock events, the agency said.

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