We've Updated Our Arconic Forecasts in Light of Investor Day Guidance; Fair Value Estimate Lowered - Morningstar Credit Research

We've Updated Our Arconic Forecasts in Light of Investor Day Guidance; Fair Value Estimate Lowered

We've Updated Our Arconic Forecasts in Light of Investor Day Guidance; Fair Value Estimate Lowered - Morningstar Credit Research
We've Updated Our Arconic Forecasts in Light of Investor Day Guidance; Fair Value Estimate Lowered
Published Dec 28, 2016
11 pages — Published Dec 28, 2016
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Brief Excerpt:

...After spinning off its upstream operations, our credit rating reflects the company s still- leveraged balance sheet plus significant unfunded pension and postretirement liabilities combined with a moderate business risk profile. Initial balance sheet debt is approximately $8.8 billion but is expected to come down from the repayment of the $750 million notes due in February 2017 as well as asset sale proceeds being directed toward debt reduction. Also, the company still has an estimated $3.1 billion in underfunded pension and other postretirement liabilities that weigh on its credit profile. Pro forma expected EBITDA for Arconic for 2017 is approximately $1.9 billion and would result in debt/ EBITDA of over 4 times. The largest contributor of EBITDA from the firm s three downstream units is Arconic s engineered products and solutions segment with an estimated EBITDA of $1.1 billion, followed by its global rolled products segment with an estimated EBITDA of approximately $500 million and,...

  
Source:
Document ID
0C000009BT_20161228_CREDIT
Ticker
ARNC=US
Primary ISIN
Primary Sedol
Format:
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MLA:
Morningstar Credit Research. "We've Updated Our Arconic Forecasts in Light of Investor Day Guidance; Fair Value Estimate Lowered" Dec 28, 2016. Alacra Store. Sep 16, 2019. <http://www.alacrastore.com/storecontent/Morningstar-Credit-Research/We-ve-Updated-Our-Arconic-Forecasts-in-Light-of-Investor-Day-Guidance-Fair-Value-Estimate-Lowered-2137-33798>
  
APA:
Morningstar Credit Research. (2016). We've Updated Our Arconic Forecasts in Light of Investor Day Guidance; Fair Value Estimate Lowered Dec 28, 2016. New York, NY: Alacra Store. Retrieved Sep 16, 2019 from <http://www.alacrastore.com/storecontent/Morningstar-Credit-Research/We-ve-Updated-Our-Arconic-Forecasts-in-Light-of-Investor-Day-Guidance-Fair-Value-Estimate-Lowered-2137-33798>
  
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