RE:RE:RE:Bombardier Aviation Fitch Rating!The fourth reason a rating may be withdrawn is the reason that Fitch mentions in BBD's case, namely, commercial or business reasons.
My understanding is that this usually means the rated firm, BBD in this case, has requested to no longer be rated. This implies to me that BBD expects their credit rating will deteriorate if they continue to be rated.
As I said, that is my understanding, but would appreciate input from anyone more knowledgeable in the matter.
Jim
Stb888 wrote: I don't think it is an attempt tu hurt Bombardier but rather an acknowledgement of the debt retructuring that is coming, eg:
Reasons why Moody's might withdraw a Credit Rating:
Moody's may withdraw a Credit Rating for any of the following reasons:
1) (i) the information available to support the Credit Rating – whether in terms of factual accuracy, quantity and/or quality – is insufficient to effectively assess the creditworthiness of the Rated Entity or the obligation; and (ii) such information is unlikely to be available to MIS in the near future.
2) Bankruptcy/Liquidation/DebtRestructuring/Write-downofaStructuredFinanceSecurity:ifa Rated Entity defaults, enters bankruptcy, is liquidated, or restructures its debt, or if a structured finance security experiences a full or partial write-down that results in a zero current balance, it may no longer be useful or necessary for MIS to maintain a Credit Rating on that Rated Entity or that Rated Entity's obligations.
3) Reorganization:ifaRatedEntitybecomesthesubjectofacorporatereorganizationorregulator- imposed restructuring, including a merger or acquisition, or enters into any other form of governmental administration, it may no longer be useful or necessary for MIS to maintain a Credit Rating on that Rated Entity or that Rated Entity's obligations.