...- The COVID-19 pandemic continues to severely disrupt global air travel, with Aernnova's main customer, Airbus, materially reducing production rates to reflect lower demand for new aircraft. - In the six months to June 2020, Aernnova reported a revenue contraction of about 314 million and a loss before tax of 18 million. - We forecast that Aernnova will report an approximate 20% decline in revenue, significantly weakened profitability, and nonmeaningful leverage metrics in 2020, before downsizing the business to improve its profitability, cash flows, and leverage in 2021. - We are lowering our long-term issuer credit rating on Aernnova to 'B' from 'B+'. We are also lowering our issue rating on the group's debt to 'B' from 'B+'. - The negative outlook reflects the risk that demand for new aircraft could be lower than we currently expect, which would lead Airbus to further cut production and Aernnova to engage in a higher level of restructuring than we currently anticipate....
