Research Update: Airbus 'A+/A-1+' Ratings Put On Watch Negative On Aircraft Delivery Delays Linked To COVID-19

In its response to reduced aircraft deliveries after the COVID-19 pandemic, Airbus SE announced on March 23, 2020, that it has increased its liquidity to €30 billion by extending the group's available credit lines. Airbus also announced the withdrawal of its 2019 dividend proposal along, with its earnings guidance for 2020, and stopped funding its voluntary pension scheme to safeguard its balance sheet. We understand that Airbus plans to maintain production and implement measures to reduce the group's ongoing cash requirements, but we believe its credit profile could weaken to a level that is no longer consistent with the ratings. We are therefore placing our 'A+/A-1+' long- and short-term ratings on Airbus on CreditWatch with negative implications. We will resolve

...- In its response to reduced aircraft deliveries after the COVID-19 pandemic, Airbus SE announced on March 23, 2020, that it has increased its liquidity to 30 billion by extending the group's available credit lines. - Airbus also announced the withdrawal of its 2019 dividend proposal along, with its earnings guidance for 2020, and stopped funding its voluntary pension scheme to safeguard its balance sheet. - We understand that Airbus plans to maintain production and implement measures to reduce the group's ongoing cash requirements, but we believe its credit profile could weaken to a level that is no longer consistent with the ratings. - We are therefore placing our 'A+/A-1+' long- and short-term ratings on Airbus on CreditWatch with negative implications. - We will resolve the CreditWatch once we have more clarity on when Airbus can resume aircraft deliveries in meaningful volumes, and how the market situation will affect its liquidity and financial position....

Research Update