Bloomberg News

S&P Downgrades Finmeccanica Rating to BBB- on Reduced Earnings

December 06, 2011

Dec. 5 (Bloomberg) -- Finmeccanica SpA, Italy’s biggest defense company, had its long-term corporate credit rating cut to BBB- with a ‘negative outlook’ by Standard & Poor’s, which cited lower earnings and restructuring of some of its divisions.

“We think that the announced suspension of dividends in 2012 is unlikely to counterbalance the company’s weakened financial position,” the ratings company said in a statement today. “Finmeccanica may be unable to improve its financial risk profile in the near term.”

The Rome-based company’s credit rating was cut from BBB, S&P said. The short-term rating was affirmed at A-3.

Finmeccanica said Nov. 15 it expects a full-year adjusted Ebitda loss of 200 million euros ($269 million) compared with a previous forecast of 1.6 billion euros for 2011.

--Editor: Ben Livesey

To contact the reporter on this story: Alessandra Migliaccio in Rome at amigliaccio@bloomberg.net

To contact the editor responsible for this story: Will Kennedy at wkennedy3@bloomberg.net


Cash Is for Losers
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus