{"id":33693,"date":"2016-09-24T00:09:14","date_gmt":"2016-09-24T05:09:14","guid":{"rendered":"http:\/\/prefblog.com\/?p=33693"},"modified":"2016-09-24T00:09:14","modified_gmt":"2016-09-24T05:09:14","slug":"bbd-downgraded-to-p-5low-by-sp","status":"publish","type":"post","link":"https:\/\/prefblog.com\/?p=33693","title":{"rendered":"BBD Downgraded to P-5(low) by S&amp;P"},"content":{"rendered":"<p>S&#038;P Global Ratings <a href=\"https:\/\/www.standardandpoors.com\/en_US\/web\/guest\/article\/-\/view\/type\/HTML\/id\/1720501\">has announced<\/a>:<\/p>\n<blockquote>\n<ul>\n<li>\u2022Bombardier Inc. has cut its 2016 delivery forecast for the C-Series due to jet engine delivery delays by Pratt &#038; Whitney.\n<li>\u2022In addition, the business and commercial jet portfolios continue to be pressured due to softer end markets, leading us to revise the business risk profile to weak from fair.\n<li>\u2022As a result, we are lowering our long-term corporate credit and issue ratings on Bombardier to &#8216;B-&#8216; from &#8216;B&#8217;.\n<li>\u2022We are lowering our global scale and Canada scale ratings on the company&#8217;s preferred stock to &#8216;CCC-&#8216; and &#8216;P-5(Low)&#8217;\n<li>\u2022The stable outlook reflects our view that the company&#8217;s liquidity provides significant financial flexibility to cover cash flow deficits and any unexpected underperformance through 2017.<\/ul>\n<p><b>&#8230;<\/b><br \/>&#8220;The downgrade primarily reflects our view of the company&#8217;s increased sensitivity to protracted weakness in its end markets and future delays to its C-Series program,&#8221; said S&#038;P Global Ratings credit analyst Aniki Saha-Yannopoulos.<br \/><b>&#8230;<\/b><br \/>The ratings on Bombardier reflect what we view as the company&#8217;s weak business risk profile and highly leveraged financial risk profile. Our ratings take into consideration the company&#8217;s competitive market position in the transportation and business aircraft segments, as well as Bombardier&#8217;s product diversity. These positives are offset, in part we believe, by the continued risk associated with Bombardier&#8217;s production ramp-up of the C-Series jet, high leverage, weakness in the business jet space, and declining cash flow from both the aerospace and transportation divisions.<\/p>\n<p>The stable outlook reflects our view that even though the company faces multiple risks, it has ample liquidity resources to manage its operations.<\/p><\/blockquote>\n<p>The <a href=\"http:\/\/www.theglobeandmail.com\/report-on-business\/quebec-minister-urges-ottawa-to-make-a-decision-on-bombardier\/article31861667\/\">most recent news regarding Bombardier&#8217;s core competency<\/a> is:<\/p>\n<blockquote>\n<p>Canadian government officials should \u201cmake up their minds\u201d on a financial aid request by struggling aircraft maker Bombardier Inc., Quebec Finance Minister Carlos Leitao says.<\/p>\n<p>Quebec announced an aid package for the C Series program late last year, which helped stabilize the Montreal-based company and allowed it to secure sales for the jet, Mr. Leitao said at the Bloomberg Canadian Fixed Income Conference in New York. Quebec finalized the deal in June.<\/p>\n<p>Bombardier also sought federal help late last year, though Prime Minister Justin Trudeau\u2019s government has since sought corporate-governance concessions in exchange for any aid package. Bombardier and the federal government remain locked in a standoff over the matter. Mr. Leitao says federal funding would allow the company to start developing new products.<br \/><b>&#8230;<\/b><br \/>Philip Proulx, a spokesman for federal Innovation Minister Navdeep Bains, who is leading talks with Bombardier on behalf of Mr. Trudeau\u2019s government, declined to comment directly on whether a decision on the aid request is imminent.<\/p>\n<p>\u201cWe want to be part of the solution to help set the company up for long term success,\u201d Mr. Proulx said by e-mail. \u201cThat is why we continue to be engaged with the company. For us, the priority is to ensure good quality jobs, R&#038;D investments and head office remains in Canada.\u201d<\/p><\/blockquote>\n<p>Affected issues are BBD.PR.B, BBD.PR.C and BBD.PR.D.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>S&#038;P Global Ratings has announced: \u2022Bombardier Inc. has cut its 2016 delivery forecast for the C-Series due to jet engine delivery delays by Pratt &#038; Whitney. \u2022In addition, the business and commercial jet portfolios continue &hellip;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"class_list":["post-33693","post","type-post","status-publish","format-standard","hentry","category-issue-comments"],"_links":{"self":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/33693","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=33693"}],"version-history":[{"count":0,"href":"https:\/\/prefblog.com\/index.php?rest_route=\/wp\/v2\/posts\/33693\/revisions"}],"wp:attachment":[{"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=33693"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=33693"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/prefblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=33693"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}