British Airways has been advised by the credit rating agency, Standard and Poor's that its corporate credit rating is to be increased to investment grade.

The company was downgraded to sub-investment grade or junk status in July 2003 following the events of September 11, 2001, and the war in Iraq.

During that period the company has reduced its net debt from 6.6 billion pounds to 990 million pounds and steadily increased its operating margin.

Keith Williams, British Airways' chief financial officer, said: "We have worked hard over the last four years strengthening the foundations of our business. Regaining investment grade status will enable us to invest in our future growth with confidence."