Qantas gets another rating downgrade January 9, 2014 - 10:42AM Qantas Airways credit rating has been downgraded to junk status by Moody's - the second ratings agency to do so in a month. Moody's cited a sharp deterioration in the airline's core domestic business, due to aggressive competition from rival Virgin Australia. "As such, we expect that Qantas' business risk and financial leverage will remain at elevated levels and inconsistent with an investment grade rating.," said Ian Lewis a Moody's senior vice president. Standard & Poor's also downgraded Qantas's rating to junk status last month a day after the airline announced the axing of 1,000 staff and warned that it could post a $300 million first half loss.