Bulletin: Lower Flying Hour Expectations Increase Rating Pressure On Rolls-Royce PLC

LONDON (S&P Global Ratings) Jan. 27, 2021--S&P Global Ratings said today that Rolls-Royce PLC's guidance of a cumulative additional cash burn over 2020-2021 of about £1 billion, versus S&P Global Rating's previous expectations, primarily as a result of lower flying hour expectations in 2021, will offset about half the boost from the £2 billion capital increase completed in November 2020. As the second and third waves of COVID-19 outbreaks have hit Europe and North America, governments have returned to implementing strict measures to contain the pandemic, including national lockdowns and travel restrictions. Significant uncertainty therefore remains on the recovery of long-haul flying hours in 2021 and beyond, which could hit airlines' and original equipment managers' (OEM's) production rates. We are

...January 27, 2021 LONDON (S&P Global Ratings) Jan. 27, 2021--S&P Global Ratings said today that Rolls-Royce PLC's guidance of a cumulative additional cash burn over 2020-2021 of about ú1 billion, versus S&P Global Rating's previous expectations, primarily as a result of lower flying hour expectations in 2021, will offset about half the boost from the ú2 billion capital increase completed in November 2020. As the second and third waves of COVID-19 outbreaks have hit Europe and North America, governments have returned to implementing strict measures to contain the pandemic, including national lockdowns and travel restrictions. Significant uncertainty therefore remains on the recovery of long-haul flying hours in 2021 and beyond, which could hit airlines' and original equipment managers' (OEM's) production rates. We are maintaining the CreditWatch negative on the long-term issuer and issue ratings on Rolls-Royce until around the time of the group's next trading update in March 2021. At that...

Bulletin