Research Update: Airbus SE Downgraded To 'A/A-1' On Lower Aircraft Demand And Weaker Credit Metrics; Outlook Negative - S&P Global Ratings’ Credit Research

Research Update: Airbus SE Downgraded To 'A/A-1' On Lower Aircraft Demand And Weaker Credit Metrics; Outlook Negative

Research Update: Airbus SE Downgraded To 'A/A-1' On Lower Aircraft Demand And Weaker Credit Metrics; Outlook Negative - S&P Global Ratings’ Credit Research
Research Update: Airbus SE Downgraded To 'A/A-1' On Lower Aircraft Demand And Weaker Credit Metrics; Outlook Negative
Published May 28, 2020
7 pages (3407 words) — Published May 28, 2020
Price US$ 225.00  |  Buy this Report Now

About This Report

  
Abstract:

We expect Airbus SE will report a 30% decline in revenue in 2020, significantly weakened profitability, up to €12 billion of cash outflow, and a net debt position at year-end, due to COVID-19 effects. In our base case, from 2021, the group's cash flow stabilizes and its adjusted FFO to debt is above 60%, but it continues to post an adjusted net debt position. Airbus' liquidity is currently exceptional. We are lowering our ratings on Airbus to 'A/A-1' from 'A+/A-1+' and removing the ratings from CreditWatch negative. The negative outlook reflects the uncertainty in assumptions used in our base case for Airbus, in particular Airbus' potential need to further cut production and engage in a higher level of restructuring than

  
Brief Excerpt:

...- We expect Airbus SE will report a 30% decline in revenue in 2020, significantly weakened profitability, up to 12 billion of cash outflow, and a net debt position at year-end, due to COVID-19 effects. - In our base case, from 2021, the group's cash flow stabilizes and its adjusted FFO to debt is above 60%, but it continues to post an adjusted net debt position. Airbus' liquidity is currently exceptional. - We are lowering our ratings on Airbus to 'A/A-1' from 'A+/A-1+' and removing the ratings from CreditWatch negative. - The negative outlook reflects the uncertainty in assumptions used in our base case for Airbus, in particular Airbus' potential need to further cut production and engage in a higher level of restructuring than currently anticipated. In such a scenario, we would assume Airbus would not generate positive free cash flow over the next two years....

  
Report Type:

Research Update

Ticker
EAD@FP
Issuer
Airbus SE
GICS
Aerospace & Defense (20101010)
Sector
Global Issuers
Country
Netherlands
Region
United States
Format:
PDF Adobe Acrobat
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Research Update: Airbus SE Downgraded To 'A/A-1' On Lower Aircraft Demand And Weaker Credit Metrics; Outlook Negative" May 28, 2020. Alacra Store. May 24, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Airbus-SE-Downgraded-To-A-A-1-On-Lower-Aircraft-Demand-And-Weaker-Credit-Metrics-Outlook-Negative-2450957>
  
APA:
S&P Global Ratings’ Credit Research. (). Research Update: Airbus SE Downgraded To 'A/A-1' On Lower Aircraft Demand And Weaker Credit Metrics; Outlook Negative May 28, 2020. New York, NY: Alacra Store. Retrieved May 24, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Airbus-SE-Downgraded-To-A-A-1-On-Lower-Aircraft-Demand-And-Weaker-Credit-Metrics-Outlook-Negative-2450957>
  
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