{"id":27496,"date":"2015-01-15T20:36:00","date_gmt":"2015-01-16T01:36:00","guid":{"rendered":"http:\/\/prefblog.com\/?p=27496"},"modified":"2015-01-15T20:36:00","modified_gmt":"2015-01-16T01:36:00","slug":"bbd-pr-b-bbd-pr-c-bbd-pr-d-downgraded-to-p-5high-by-sp","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=27496","title":{"rendered":"BBD.PR.B, BBD.PR.C & BBD.PR.D Downgraded to P-5(high) by S&P"},"content":{"rendered":"

Bombardier announced a ‘pause’ today and the market paused its bids<\/a>:<\/p>\n

Bombardier Inc. (BBD\/B) tumbled the most in at least 26 years after moving to cut about 1,000 jobs and book $1.4 billion in pretax fourth-quarter costs as it halts work on the Learjet 85 business aircraft.<\/p>\n

The dismissals will take place in Kansas and Mexico, and result in severance expense of $25 million this quarter, said Bombardier, which didn\u2019t predict when the Learjet 85 program will resume. Profit in the aerospace and trainmaking units for 2014 will fall short of previously announced targets.<\/p>\n

Bombardier\u2019s pullback on the Learjet 85, which was described as a \u201cpause\u201d in the face of weak demand, underscored the company\u2019s struggle in developing new planes. The Learjet 85 is already more than a year behind schedule, and Montreal-based Bombardier eliminated about 3,500 aerospace jobs last year as it postponed the CSeries airliner for the fourth time.<\/p>\n

\u201cIt\u2019s really not clear to me what \u2018pause\u2019 means,\u201d said Cam Doerksen, an analyst at National Bank of Canada Financial in Montreal who rates Bombardier as sector perform. \u201cThis is a pretty sizable charge, and this suggests to me this may be longer than a typical delay. This appears to be an indefinite pause.\u201d
…<\/b>
The cost to protect Bombardier\u2019s debt from default within 5 years jumped 125 basis points to 481 basis points at 4:17 p.m., according to data provider CMA, which is owned by McGraw Hill Financial and compiles prices quoted by dealers in the privately negotiated market. The contracts are at the highest level since January 2012.<\/p><\/blockquote>\n

and S&P cut their credit rating by a notch<\/a>:<\/p>\n

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