DALLAS - Southwest Airlines, which is leading a $519 million bond-funded redevelopment of its home airport Dallas Love Field, saw its senior unsecured debt rating downgraded two notches to Baa3 by Moody's Investors Service yesterday.

The downgrade came a day after Southwest reported a second-quarter profit of $54 million, or 7 cents per diluted share, down 83% from $321 million, or 44 cents per diluted share, for the same quarter in 2008.

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