S&P downgrades BAE Systems´s long-term debt
Updated : 15:07
Standard and Poor´s downgraded its rating on the long-term debt of BAE Systems because of its weak debt metrics in the face of a substantial shortfall in its pensions.
The ratings agency lowered its rating on the aerospace and defence company´s debt from BBB+ to BBB but kept the outlook on the new rating unchanged at 'neutral'.
S&P´s latter decision reflected its forecasts for the company´s leverage metrics to improve over the next two years, to about three times net debt-to-earnings before interest, taxes, depreciation and amortisation and 25% funds from operations-to-debt, supported by steady operating results and improving cash flow generation.
As of 1502 BST shares in BAE Systems were down by 1.91% to 538.0p, but nevertheless barely down from their five-year highs of 555.50p.