Struggling BA receives "junk" status - papers 2nd July

BRITISH AIRWAYS, Britain's largest airline, was left traumatised yesterday after the company had its financial rating cut to "junk" status as S&P raised fears about BA's financial situation, writes the Scotsman. Shares in the airline dropped 6% after S&P said it was worried about the prospects that BA bondholders would not be repaid if the airline would go bust. This comes as BA - in its last accounts statement - announced debts of almost £7bn. S&P cut BA's ratings to BB+ and BB-, from BBB- and BB+ respectively, rendering the bonds the status "junk". Accordi...