03:26:54 EDT Fri 29 Mar 2024
Enter Symbol
or Name
USA
CA



Bombardier Inc
Symbol BBD
Shares Issued 1,932,621,624
Close 2016-09-23 C$ 1.60
Market Cap C$ 3,092,194,598
Recent Sedar Documents

Post says S&P downgrades Bombardier debt to B-minus

2016-09-26 09:47 ET - In the News

The Financial Post reports in its Saturday edition that S&P Global Ratings has moved Bombardier's debt rating deeper into speculative territory, downgrading it to B-minus from B after the company cut its 2016 CSeries delivery forecast in half. The Post's Kristine Owram writes that Bombardier now expects to deliver seven of its new CSeries jetliners this year, down from a previous forecast of 15, due to production issues at engine supplier Pratt & Whitney. This will result in another $150-million cash-flow deficit, for total cash-flow usage of $1.15-billion to $1.45-billion in 2016 (all figures U.S.). This, combined with softer demand for both business and commercial jets, caused S&P to downgrade Bombardier's debt to B-minus with a stable outlook. "The downgrade primarily reflects our view of the company's increased sensitivity to protracted weakness in its end markets and future delays to its CSeries program," S&P credit analyst Aniki Saha-Yannopoulos said in a statement. Bombardier is expected to face a cash-flow shortfall of as much as $2-billion through 2017. A Bombardier spokesman said the company disagrees with S&P's opinion, pointing to its "de-risking" and liquidity improvements.

© 2024 Canjex Publishing Ltd. All rights reserved.