NoWay
It's time to play the game
Ma di ucraino taglio per poveri umani non c'è niente?
Obbligazioni societarie HIGH YIELD e oltre, verso frontiere inesplorate - Vol. 1
- Creatore Discussione TRADING_IDEAS
- Data di Inizio
- Stato
Ma di ucraino taglio per poveri umani non c'è niente?
Moody's downgrades Bombardier to B1; continues review
Global Credit Research - 12 Feb 2015
Approximately $7 Billion of Debt Securities Affected
Toronto, February 12, 2015 -- Moody's Investors Service downgraded Bombardier Inc.'s Corporate Family rating (CFR) to B1 from Ba3, probability of default rating to B1-PD from Ba3-PD and senior unsecured ratings to B1 from Ba3. Moody's also affirmed the company's speculative grade liquidity rating at SGL-3. Bombardier's long term ratings remain under review for possible downgrade.
RATINGS RATIONALE
"We lowered Bombardier's ratings to B1 because we view its planned increase in debt and ongoing execution challenges with continuing elevated free cash flow consumption as inconsistent with a Ba3 rating, said Darren Kirk, Moody's Vice President and Senior Credit Officer. "We are continuing our review until we gain confidence that Bombardier will successfully raise $1.5 billion in debt and $600 million in common equity to boost its liquidity", added Kirk. Moody's expects to confirm Bombardier's B1 CFR if the company executes its financing plans however the rating on its senior unsecured notes could still be lowered if the company obtains secured debt with its funding initiatives.
Bombardier's CFR rating is driven by Moody's expectation that the company's financing plans and ongoing execution challenges will result in adjusted financial leverage remaining around 8x through 2015 and likely longer. As well, Moody's believes weak order levels for new aircraft, working capital requirements in its Transportation division, and the elevated capex needed to complete the development of the CSeries and Global aircraft platforms will cause Bombardier's free cash flow consumption to exceed $1 billion in 2015. While Bombardier's financing plans will further weaken its financial metrics, its liquidity would improve materially. Consequently, the company would have significant flexibility to absorb execution risks associated with bringing the CSeries into service, when a reduction in capital expenditures will drive improvement in Bombardier's free cash flow. The company's significant scale and diversity, strong global market positions, natural barriers to entry and sizeable backlog levels in both its business segments favorably influence the rating.
Absent completion of its financing plans, Bombardier's $2.5 billion of cash and $1.4 billion of available revolvers are adequate to fund Moody's free cash flow consumption estimate in 2015 and a $750 million debt maturity in January 2016 while respecting minimum liquidity requirements, albeit with limited cushion. However, continued covenant compliance through the next year is a concern in Moody's opinion, which will need to be addressed as part of the company's financing plans.
..Issuer: Bombardier Inc.
.... Speculative Grade Liquidity Rating, Affirmed at SGL-3
....Corporate Family Rating, downgraded to B1 Review for Downgrade, currently Ba3 Review for Downgrade
....Probability of Default Rating, downgraded to B1-PD Review for Downgrade, currently Ba3-PD Review for Downgrade
....Senior Unsecured Regular Bonds/Debentures, downgraded to B1/LGD4 Review for Downgrade, currently Ba3/LGD4 Review for Downgrade
Outlook Action:
..Issuer: Bombardier Inc.
....Outlook, Maintained Rating Under Review for Downgrade
..Issuer: Broward (County of) FL
....Senior Unsecured Revenue Bonds, downgraded to B1/LGD4 Review for Downgrade, currently Ba3/LGD4 Review for Downgrade
..Issuer: Connecticut Development Authority
.... Senior Unsecured Revenue Bonds, downgraded to B1/LGD4 Review for Downgrade, currently Ba3/LGD4 Review for Downgrade
..Issuer: Dallas-Fort Worth Intl. Airp. Fac. Imp. Corp.
.... Senior Unsecured Revenue Bonds, downgraded to B1/LGD4 Review for Downgrade, currently Ba3/LGD4 Review for Downgrade
The principal methodology used in these ratings was Global Aerospace and Defense Industry published in April 2014. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Please see the Credit Policy page on www.moodys.com for a copy of these methodologies.
Headquartered in Montreal, Quebec, Canada, Bombardier is a globally diversified manufacturer of business and commercial jets as well as rail transportation equipment. Annual revenues total roughly $20 billion
Global Credit Research - 12 Feb 2015
Approximately $7 Billion of Debt Securities Affected
Toronto, February 12, 2015 -- Moody's Investors Service downgraded Bombardier Inc.'s Corporate Family rating (CFR) to B1 from Ba3, probability of default rating to B1-PD from Ba3-PD and senior unsecured ratings to B1 from Ba3. Moody's also affirmed the company's speculative grade liquidity rating at SGL-3. Bombardier's long term ratings remain under review for possible downgrade.
RATINGS RATIONALE
"We lowered Bombardier's ratings to B1 because we view its planned increase in debt and ongoing execution challenges with continuing elevated free cash flow consumption as inconsistent with a Ba3 rating, said Darren Kirk, Moody's Vice President and Senior Credit Officer. "We are continuing our review until we gain confidence that Bombardier will successfully raise $1.5 billion in debt and $600 million in common equity to boost its liquidity", added Kirk. Moody's expects to confirm Bombardier's B1 CFR if the company executes its financing plans however the rating on its senior unsecured notes could still be lowered if the company obtains secured debt with its funding initiatives.
Bombardier's CFR rating is driven by Moody's expectation that the company's financing plans and ongoing execution challenges will result in adjusted financial leverage remaining around 8x through 2015 and likely longer. As well, Moody's believes weak order levels for new aircraft, working capital requirements in its Transportation division, and the elevated capex needed to complete the development of the CSeries and Global aircraft platforms will cause Bombardier's free cash flow consumption to exceed $1 billion in 2015. While Bombardier's financing plans will further weaken its financial metrics, its liquidity would improve materially. Consequently, the company would have significant flexibility to absorb execution risks associated with bringing the CSeries into service, when a reduction in capital expenditures will drive improvement in Bombardier's free cash flow. The company's significant scale and diversity, strong global market positions, natural barriers to entry and sizeable backlog levels in both its business segments favorably influence the rating.
Absent completion of its financing plans, Bombardier's $2.5 billion of cash and $1.4 billion of available revolvers are adequate to fund Moody's free cash flow consumption estimate in 2015 and a $750 million debt maturity in January 2016 while respecting minimum liquidity requirements, albeit with limited cushion. However, continued covenant compliance through the next year is a concern in Moody's opinion, which will need to be addressed as part of the company's financing plans.
..Issuer: Bombardier Inc.
.... Speculative Grade Liquidity Rating, Affirmed at SGL-3
....Corporate Family Rating, downgraded to B1 Review for Downgrade, currently Ba3 Review for Downgrade
....Probability of Default Rating, downgraded to B1-PD Review for Downgrade, currently Ba3-PD Review for Downgrade
....Senior Unsecured Regular Bonds/Debentures, downgraded to B1/LGD4 Review for Downgrade, currently Ba3/LGD4 Review for Downgrade
Outlook Action:
..Issuer: Bombardier Inc.
....Outlook, Maintained Rating Under Review for Downgrade
..Issuer: Broward (County of) FL
....Senior Unsecured Revenue Bonds, downgraded to B1/LGD4 Review for Downgrade, currently Ba3/LGD4 Review for Downgrade
..Issuer: Connecticut Development Authority
.... Senior Unsecured Revenue Bonds, downgraded to B1/LGD4 Review for Downgrade, currently Ba3/LGD4 Review for Downgrade
..Issuer: Dallas-Fort Worth Intl. Airp. Fac. Imp. Corp.
.... Senior Unsecured Revenue Bonds, downgraded to B1/LGD4 Review for Downgrade, currently Ba3/LGD4 Review for Downgrade
The principal methodology used in these ratings was Global Aerospace and Defense Industry published in April 2014. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Please see the Credit Policy page on www.moodys.com for a copy of these methodologies.
Headquartered in Montreal, Quebec, Canada, Bombardier is a globally diversified manufacturer of business and commercial jets as well as rail transportation equipment. Annual revenues total roughly $20 billion
fabriziof
Forumer storico
Un altra lascia o raddoppia che ho è XS0558618384
Cat XL
Shizuka Minamoto
Io sono meno negativo (infatti ho acquistato)Certo il momento è critico e durerà ancora non poco. Ti ricordo però il detto 'things will get worse before they get better'
Intendevo "conoscere" la societa' (che cosa e non fa...) non la qualita' del credito. Sono sicuro che non fallira', almeno a breve.
londonwhale
Forumer storico
Magnolia 9%
Vedo ora il Magnolia 9% a 100.5, qualcuno ha news, o é solo trasportata dall'euforia del mercato?
Vedo ora il Magnolia 9% a 100.5, qualcuno ha news, o é solo trasportata dall'euforia del mercato?
Joe Silver
Forumer storico
KB Home & Transocean
Preso assaggino a 101,25.
Intanto Transocean in recupero: per la 6,375% 2020 lettera a 87,37, mentre la 2031 si vende a 85,5.
Preso assaggino a 101,25.
Intanto Transocean in recupero: per la 6,375% 2020 lettera a 87,37, mentre la 2031 si vende a 85,5.
Joe Silver
Forumer storico
iguanito
Forumer storico
Il problema è che sono scommesse costose visto il taglio e il cambio al livello attuale.
Myskin
Forumer stoico
diffido ma compero
Qualcuno (Gion, Fabrizio) ha notizie ed opinioni su questa che, a prima vista, mi sembra una ciofeca...degna di entrare nel nostro club degli orrori/errori
a me non piace
oggi liquidato avon, bella corsa, pancia piena
KTG Agrar 11/17 7,125% isin DE000A1H3VN9 e Homann Holz 12/17 7% isin DE000A1R0VD4
Ciao a tutti, vorrei chiedervi la vostra visione relativamente ai titoli in oggetto: è da qualche mese che li seguo e sostanzialmente vedo la KTG gravitare sempre intorno a 100 senza troppe oscillazioni e in apparenza sembra un'azienda solida con un giro d'affari non indifferente.
Homann Holz invece ha stazionato per qualche mese su valori pari o superiori a 100 e ora è comodamente piazzata su quotazioni che la vedono tra 78 - 84 e non riesco a reperire alcun tipo di informazioni a riguardo.
Cosa ne pensate?
Grazie e buon pomeriggio
Ciao a tutti, vorrei chiedervi la vostra visione relativamente ai titoli in oggetto: è da qualche mese che li seguo e sostanzialmente vedo la KTG gravitare sempre intorno a 100 senza troppe oscillazioni e in apparenza sembra un'azienda solida con un giro d'affari non indifferente.
Homann Holz invece ha stazionato per qualche mese su valori pari o superiori a 100 e ora è comodamente piazzata su quotazioni che la vedono tra 78 - 84 e non riesco a reperire alcun tipo di informazioni a riguardo.
Cosa ne pensate?
Grazie e buon pomeriggio
- Stato
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HIGH YIELD e oltre, verso frontiere inesplorate, vol.3
