USAIR <U> AND UNIT REMAIN UNDER MOODY'S REVIEW
Moody's Investors Service Inc said the
212.75 mln dlrs of debt of USAir Group Inc and its USAir Inc
unit remain under review for possible downgrade.
    The rating agency cited USAir Group's proposed acquisition
of Piedmont Aviation Inc <PIE>, as well as Trans World Airlines
Inc's <TWA> proposed cash merger with USAir.
    However, the status of TWA's bid for USAir Group is
currently uncertain. The U.S. Transportation Department has
rejected TWA's application to acquire USAir on deficiency
grounds, but TWA has said it will file a revised application,
Moody's noted.
    Under Moody's review for possible downgrade are USAir
Group's Baa-1 senior debt and Baa-2 subordinated debentures,
along with the USAir unit's A-3 senior debt and Baa-1
subordinated debentures.
    Moody's said it would examine the effects of the proposed
mergers on USAir Group's financial measurements, as well as
potential damage to the company's financial flexibility because
of the probability of increased debt-service requirements.
 Reuter
