MOODY'S MAY DOWNGRADE PIEDMONT AVIATION &lt;PIE> 

  Moody's Investors Service Inc said it
  may downgrade 120 mln dlrs of debt of Piedmont Aviation Inc
  because of the airline's agreement to be acquired by USAir
  Group Inc &lt;U>.
      The rating agency said its review would focus on the effect
  of the acquisition on Piedmont's financial leverage and its
  debt-service requirements. Moody's said it is also examining
  the potential use of the airline's borrowing capacity to
  finance the merger.
      Piedmont currently carries Baa-2 preferred stock and
  Prime-2 commercial paper.
  

