S&P Downgrades Finmeccanica Rating to BBB- on Reduced Earnings
Finmeccanica SpA (FNC), Italy’s biggest defense company, had its long-term corporate credit rating cut to BBB- with a ‘negative outlook’ by Standard & Poor’s, which cited lower earnings and restructuring of some of its divisions.
“We think that the announced suspension of dividends in 2012 is unlikely to counterbalance the company’s weakened financial position,” the ratings company said in a statement today. “Finmeccanica may be unable to improve its financial risk profile in the near term.”
The Rome-based company’s credit rating was cut from BBB, S&P said. The short-term rating was affirmed at A-3.
Finmeccanica said Nov. 15 it expects a full-year adjusted Ebitda loss of 200 million euros ($269 million) compared with a previous forecast of 1.6 billion euros for 2011.
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