Strips of Tarmac that are worth billions to airlines.

BRITISH Airway's debt could be reduced to junk grade if the aviation industry's fortunes worsen, Standard & Poor's, the credit rating agency, has warned.

Its comments come as concerns grow that BA is escaping a cash crisis by creating a debt mountain. Analysts are concerned that its cost of borrowing could be as big a threat to its survival as dwindling cash reserves.

Bob Ukiah, aviation analyst at S&P, said: "If the market gets worse, the rating could go below investment grade." Ukiah reduced the company's credit rating from BBB+ to BBB- after the 11 Septe