MOODY'S MAY DOWNGRADE PIEDMONT AVIATION <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 <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.
 Reuter
