Bulletin: Airbus Ratings Unaffected By Announced Majority Stake Acquisition Of C Series Aircraft Program From Bombardier

PARIS (S&P Global Ratings) Oct. 18, 2017--S&P Global Ratings said today that its ratings and outlook on Netherlands-based global aerospace and defense company Airbus SE (A+/Stable/A-1+) are unaffected by the company's announcement of its acquisition of a 50.01% controlling stake in the C Series aircraft program currently majority owned by Bombardier Inc. Bombardier and Investissement Quebec will remain minority shareholders in the joint venture with 31% and 19% ownership, respectively. The transaction remains subject to regulatory approvals and is expected to close during the second half of 2018. We view the transaction would be broadly credit neutral for Airbus because we believe the potential benefits from the program will be realized beyond our two-year rating horizon. We acknowledge that it

...PARIS (S&P Global Ratings) Oct. 18, 2017--S&P Global Ratings said today that its ratings and outlook on Netherlands-based global aerospace and defense company Airbus SE (A+/Stable/A-1+) are unaffected by the company's announcement of its acquisition of a 50.01% controlling stake in the C Series aircraft program currently majority owned by Bombardier Inc. Bombardier and Investissement Quebec will remain minority shareholders in the joint venture with 31% and 19% ownership, respectively. The transaction remains subject to regulatory approvals and is expected to close during the second half of 2018. We view the transaction would be broadly credit neutral for Airbus because we believe the potential benefits from the program will be realized beyond our two-year rating horizon. We acknowledge that it could strengthen Airbus' market position in the smaller single-aisle (100 to 150 seats) segment, where it is not currently present, without involving any cash investment or additional debt at closing....

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