Moody’s downgrades British Airways

Moody’s Investors Service said it downgraded British Airways, plc’s corporate family rating to Ba2 from Ba1. Concurrently Moody’s downgraded the ratings of British Airways Pass-Through Trust 2019-1AA (class AA) to A2 from A1, British Airways Pass-Through Trust 2019-1A (class A) to Baa2 from Baa1, British Airways Pass-Through Trust 2018-1AA (class AA) to A2 from A1, British Airways Pass-Through Trust 2018-1A (class A) to Baa2 from Baa1 and Speedbird 2013 Ltd. (class A) to Baa2 from Baa1.

“The coronavirus pandemic, the weakened global economic outlook, low oil prices and asset price declines are sustaining a severe and extensive credit shock across many sectors, regions and markets. The combined credit effects of these developments are unprecedented. The passenger airline industry is one of the sectors most significantly affected by the shock given its exposure to travel restrictions and sensitivity to consumer demand and sentiment. Today’s action reflects the impact on British Airways of the breadth and severity of the shock, and the broad deterioration in credit quality it has triggered,” Moody’s said in a press release.

The outlook on British Airways and on all of the above EETC transactions remains negative.

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