RE:Bombardier's New Evaluation Time ArrivingI don't think that is the explanation, BBDB859. Fitch is saying they will no longer rate BBD after mid February. The fact that BBD is getting a chunk of cash from Alstom in 2 weeks is no reason for Fitch to stop rating them. Fitch could simply issue new ratings based on whatever information is available to them. I believe more is at play here.
I think that BBD has either asked Fitch to cease rating them, or has informed Fitch that after mid February certain information will no longer be available to them, information that Fitch requires in order to rate BBD efficiently and accurately.
I am going to go out on a limb here and state that I believe we will see a major change in the structure of the company before the end of Feb. YMMV.
Jim
BBDB859 wrote: In February, after Q4 and after the closing of the BT deal, Bombardier will become a totally different company. That's only 3 weeks away.
Therefore it's evaluation will be totally different. Once the deal closes, the Bomber will be easier to rate by agencies. The one trick pony BA, will have a certain value, and there will be repayment of debts, and cash left over.
IMHO. The Rating Agencies want to take a step and re-rate the company. It's the only logical explanation for them, in them making this decision.
This company will go through a total revampment. The risks for the rating given for Bombardier in the past (old Bombardier), will be changed to reflect the new remaining company, and the old risks will not apply. It's The only reason why the rating agencies would not want to rate the company now, being so close to the closing. BK risk is less. Cash on hand is large/strong, and ability to pay debt has changed.
This is what is going on. IMHO.