S&P raises British Airways's credit rating to BB+, with stable outlook

Standard&Poor's upgraded its rating on the long-term debt of British Airways on improved expectations for its funds from operations.

The ratings agency said the BA's and parent group International Airline Group's credit metrics had continued improving in 2016 and that it now expected the ratio between their FFO and debt to remain above 30% over the next two years.

Hence, S&P raised its credit rating to BB+.

It also said the recent IT failure at BA was a one-off event, predicting that it would only have a "marginal" effect on the airline's credit metrics.

The so-called 'outlook' on its ratings for the two firms was stable, S&P said.