DBRS has announced that it:
has today downgraded the Issuer Rating of Bombardier Inc. (Bombardier or the Company) to B (high) and the Trend has been changed to Negative. DBRS’s downgrade incorporates the Company’s progressively weaker financial profile due to debt and liquidity burdens, as well as the erosion of its business profile. The Company’s substantial negative net free cash flow and sizeable financing needs to support its aircraft developments programs have led to increasing indebtedness and weakening of all credit metrics in 2014. Substantial cost pressures have led to the erosion of margins at the aerospace and transportation businesses due to competitive and operational reasons. DBRS could take further negative rating action should the Company announce additional operating challenges, encounter difficulties in executing its ambitious financing, incur material indebtedness or see additional deterioration in profitability.
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DBRS’s rating action reflects the Company’s rapidly weakening financial and business risk profiles at its aerospace and transportation businesses. The Negative Trend reflects uncertainty surrounding the financial and business profiles of the Company, noting that both are subject to deterioration and potential rating action in the near-mid-term.
In November, 2013, DBRS announced that it:
downgraded the Issuer Rating and Senior Unsecured Debentures of Bombardier Inc. (BBD or the Company) to BB (low) and the Preferred Shares were downgraded to Pfd-4 (low). The trend on the Issuer Rating is Stable and DBRS has removed all ratings from Under Review with Negative Implications. Additionally, DBRS has discontinued the Company’s Senior Unsecured Debentures and Preferred Shares ratings effective immediately.
Earlier this year, PrefBlog reported that BBD.PR.B, BBD.PR.C & BBD.PR.D Downgraded to P-5(high) by S&P.
BBD.PR.B, BBD.PR.C and BBD.PR.D are all tracked by HIMIPref™ but are relegated to the Scraps index on credit concerns.
This entry was posted on Friday, February 13th, 2015 at 7:22 pm and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed.
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DBRS Downgrades Bombardier
DBRS has announced that it:
In November, 2013, DBRS announced that it:
Earlier this year, PrefBlog reported that BBD.PR.B, BBD.PR.C & BBD.PR.D Downgraded to P-5(high) by S&P.
BBD.PR.B, BBD.PR.C and BBD.PR.D are all tracked by HIMIPref™ but are relegated to the Scraps index on credit concerns.
This entry was posted on Friday, February 13th, 2015 at 7:22 pm and is filed under Issue Comments. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.