BA debt now 'junk'

[openseat]

Seems things are getting tight for BA

British Airways debt cut to junk after profit warning | Reuters

 

[JohnK]

Not surprising considering what airlines are going through at the moment.

Moody's concern about BA's spending plans amid a weak outlook for airlines reflects fears by easyJet (EZJ.L) founder Stelios Haji-Ioannou that the low-cost carrier may be growing too fast for current demand.

EasyJet said last week it would consider scaling back its fleet growth plans if the economy worsens during 2009.

Interesting comments from the founder of EasyJet....

 

[oz_mark]

Of course, as we have learnt over the last year, ratings agencies such as Moody's and Standard & Poor's haven't got a clue when it comes to properly assessing risk, and assigning the correct ratings. Another industry about to feel the weight of regulators I think.

Having said that, it is a tough time for airlines out there, but then it always seems to be tough time out there!