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Bombardier Inc. T.BBD.A

Alternate Symbol(s):  BDRPF | T.BBD.PR.B | BDRXF | T.BBD.PR.C | T.BBD.PR.D | BOMBF | BDRAF | T.BBD.B | BDRBF

Bombardier Inc. is a Canada-based manufacturer of business aircraft with a global network of service centers. The Company is focused on designing, manufacturing and servicing business jets. The Company has a worldwide fleet of more than 5,000 aircraft in service with a variety of multinational corporations, charter and fractional ownership providers, governments and private individuals. It operates aerostructure, assembly and completion facilities in Canada, the United States and Mexico. Its robust customer support network services the Learjet, Challenger and Global families of aircraft, and includes facilities in strategic locations in the United States and Canada, as well as in the United Kingdom, Germany, France, Switzerland, Austria, the United Arab Emirates, Singapore, China and Australia. The Company's jets include Challenger 350, Challenger 3500, Challenger 650, Global 5500, Global 6500, Global 7500 and Global 8000.


TSX:BBD.A - Post by User

Bullboard Posts
Comment by Acuras1on Sep 23, 2016 7:35pm
156 Views
Post# 25272630

RE:S&P revises Bombardier's outlook to stable from negative....

RE:S&P revises Bombardier's outlook to stable from negative....
The material change here is that Bombardier is now off the credit watch
with a stable outlook from a negative one i.e. they have sufficient cash for 2017 year.

The medias love to twist things around- here's what S&P said from Barron's:



September 23, 2016, 1:21 P.M. ET

Bombardier Credit Downgraded Due to C-Series Delays

By Amey Stone

Problems in its business and commercial jet businesses are weighing on Montreal-based Bombardier (CA:BBD.B). As a result, Standard & Poor’s downgraded its credit rating to B-minus, from B on Friday. That’s just one notch above the perilous triple-C ratings that indicates it is an extremely speculative investment.

S&P credit analyst Aniki Saha-Yannopoulos explained:

The downgrade primarily reflects our view of the company’s increased sensitivity to protracted weakness in its end markets and future delays to its C-Series program.

Bombardier’s C-Series planes haven’t been able to ramp up production as much as expected due to delivery delays from the maker of the engines.

S&P says:

We believe the company remains exposed to weaker-than-expected market conditions in its key end market, or further delays in its C-Series program that could precipitate higher than expected cash flow deficits and limit its financial flexibility. Furthermore, we view a material improvement in the company’s highly leveraged credit measures, which are potentially unsustainable over the longer term, as unlikely at least through 2018.

On the bright side, with the downgrade, S&P now has a “stable” outlook on Bombardier, which indicates future downgrades are unlikely for at least the next year. S&P reports:

The stable outlook reflects our view that the company’s liquidity provides significant financial flexibility to cover cash flow deficits and any unexpected underperformance through 2017.


Bullboard Posts