Canada-based CAE Inc. announced a re-baselining of its defense business, along with defense impairment charges and contract adjustments related to eight previously identified fixed-price legacy contracts. As a result, the company's credit measures are trending weaker than we had previously expected and we think profitability within the defense segment will take a few years before reaching more appropriate levels such as pre-pandemic. S&P Global Ratings affirmed its ratings on CAE, including its 'BBB-' issuer credit rating on the company. The stable outlook reflects our expectation that robust demand for CAE's civil aviation training solutions and prospective improvement in profitability within the defense segment should drive down leverage to 3x or lower within the next couple of years. In the past
