S&P downgrades Bombardier

Standard & Poor's said it lowered the ratings on Bombardier Inc., including its long-term corporate credit rating to BB- from BB.

The outlook is stable.

The downgrades reflect Bombardier's lower-than-expected cash generation in 2013 and an expectation for continue negative free cash flow in 2014, said Jamie Koutsoukis, an S&P analyst.

Furthermore, the agency said it does not believe the company will be able to improve its credit measures to levels that will support the BB corporate credit rating through late 2015, Koutsoukis said in a press release.

The ratings also take into account its leading market positions in the transportation and business aircraft segments, as well as its product range and diversity, S&P said.

These positive factors are partially offset by the continued execution risk associated with the entry into service of the C-Series jet, high leverage and reported profitability that has been weak in both the aerospace and transportation divisions, the agency said.

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