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STOCKS NEWS EUROPE-British Airways CDS widens on junk cut

Fri Jul 10, 2009 3:12am EDT

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Five-year credit defaults swaps on British Airways (BAY.L) widen 20 basis points to 835 basis points, a trader says, after Moody's Investors Service cut the airline's credit rating further into junk territory.

Moody's cut its rating on British Airways by one notch to Ba3, the third-highest junk rating, from Ba2, citing weakening travel demand and higher fuel prices.

BA first lost its Moody's investment-grade rating in February and has since been cut twice by the rating agency.

BA shares are up 0.7 percent in a weaker broader market. For more double click on [ID:nN09460817]

Reuters Messaging rm://natalie.harrison.reuters.com@reuters.net


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