U.K.-based BAE Systems PLC (A/Negative/A-1) announced today charges totaling £400 million to close down its regional jet manufacturing and restructure various other commercial aerospace units. Standard&Poor's ratings and outlook on BAE are not affected. The after-tax cash costs of these charges, £235 million, reduce financial flexibility somewhat, but the company still has substantial available cash and investments. The closure of BAE's regional aircraft unit, accounting for most of the charge, was not unexpected, as BAE has a modest market share and was operating at approximately breakeven. The company continues to service a large portfolio of leased regional jet and turboprop aircraft, but its exposure to likely reduced future lease rentals is capped at £30 million (an amount included
