Moody’s has downgraded Qantas Airways from Baa2 to Baa3because of high fuel prices and strong competition. The significance of this is that the new rating is Moody’s lowest investment-grade rating. This has understandably has shocked many investors. One more slip due to increasing fuel costs and competition pressures and the airline’s shares will have to be dumped by a significant section of investors as they no longer conform to the minimal requirements of their portfolios.  Moreover and far more importantly the investment rating is crucial to cheap financing of operations.   Understandably, Qantas sought to reassure investors that its financial

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