Moody's cuts EADS

Moody's Investors Service said it lowered the long-term senior unsecured debt rating of European Aeronautic Defence & Space Co. and its subsidiary EADS Finance BV, each to A2 from A1, following the company's announcement of proposed changes to its governance and ownership structure that are expected to be implemented in 2013.

When completed, the changes are expected to ultimately result in equal ownership and voting shares of 12% each for France and Germany, each being lower than the effective voting interest previously exercised by France.

"While EADS will continue to be strategically important for both the French and German governments, we believe the planned changes will result in a lower degree of government influence and control when implemented, and an increased emphasis on commercial objectives," said Russell Solomon, a Moody's senior vice president and lead analyst in a news release.

"Consequently, the rating downgrade reflects lower expectations for potential government support."

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