Posts Tagged ‘Moody’s’

Moody’s downgrades Hawker Beechcraft

Thursday, September 29th, 2011

Moody’s, which upgrades and downgrades dozens of companies a week, gave Hawker Beechcraft a slightly lower rating September 20. Here is Moody’s explanation:

“The Caa3 rating reflects Hawker Beechcraft’s mounting retained deficit and our view that the soft economy dims chances for profitability anytime soon. Although limited near-term debt maturities exist, with the prospect of further losses we view the capital structure to be unsustainable. We see pronounced risk that some form of debt restructuring may occur. Softness in most developed economies should continue to constrain demand for the smaller and mid-sized cabin aircraft that comprise the company’s Business and General Aviation product portfolio. While management has aggressively lowered overhead and cut production costs, the revenue outlook seems weak.”