Moody’s reviews Forming Machines for cut

Moody’s Investors Service said it placed the ratings for Forming Machining Industries Holdings, LLC, on review for downgrade following Spirit Aerosystems, Inc.’s announcement it intends to stop all 737 MAX deliveries to Boeing effective Jan. 1. Forming Machines is the legal borrower for the Atlas Group.

“The review for downgrade is based on the likely negative impact to Atlas’ near-term liquidity profile of Spirit Aerosystems’ announcement that it will suspend Boeing 737 MAX production beginning on Jan. 1, 2020,” said Gigi Adamo, Moody’s lead analyst for Forming Machining/Atlas, in a press release.

“Further, besides the likely negative impact on liquidity, Atlas’ already high leverage profile that had been improving through the last twelve months will likely reverse course if there is a prolonged production suspension,” added Adamo.

Moody’s said heightened uncertainty and elevated financial and operational risk will persist over the interim period while 737 MAX production is halted.

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