Streetbeat News

Credit Ratings

BA

MCO

Moody's Ratings downgraded Boeing Co.'s (NYSE:BA) credit score from Baa2 to Baa3, citing underperformance in its commercial airplanes segment and concerns over meeting debt maturities in 2025 and 2026. Despite the downgrade, Boeing remains investment-grade but is on the brink of 'junk' status. The downgrade reflects ongoing quality-control issues and impacts from two tragic crashes. Moody's also adjusted its outlook on other entities, including direct lending funds managed by BlackRock Inc., KKR & Co., and Oaktree Capital Management, and previously downgraded New York Community Bancorp and the entire U.S.

Portfolio Pulse from Anthony Noto

April 24, 2024 | 9:28 pm

BA

Boeing's stock price declined following Moody's downgrade of its Senior Unsecured rating from Baa2 to Baa3.

Portfolio Pulse from Benzinga Newsdesk

April 24, 2024 | 6:10 pm

BA

Moody's predicts Boeing will issue new debt to cover free cash flow shortfalls, citing weak performance in commercial airplanes as a constraint on cash flow for 2024 and 2025. The outlook includes significant execution risk in Boeing's plan to improve commercial aircraft assembly operations.

Portfolio Pulse from Benzinga Newsdesk

April 24, 2024 | 6:03 pm

BA

Moody's downgraded Boeing's short-term rating from P-2 to P-3, citing inadequate performance in its Commercial Airplanes segment. The negative outlook suggests headwinds for the segment will persist through at least 2026.

Portfolio Pulse from Benzinga Newsdesk

April 24, 2024 | 6:02 pm

BA

Moody's Ratings has downgraded Boeing's senior unsecured rating from Baa2 to Baa3, with a negative outlook. This downgrade reflects concerns about Boeing's financial health and future prospects.

Portfolio Pulse from Benzinga Newsdesk

April 24, 2024 | 6:01 pm

DAL

Delta Air Lines, Inc. (NYSE:DAL) reported better-than-expected Q1 2024 earnings with an 8% YoY operating revenue growth to $13.748 billion and an adjusted EPS of 45 cents, surpassing consensus estimates. The company anticipates repaying at least $4 billion of debt this year, with credit rating improvements recognized by Moody’s and Fitch. For Q2, Delta expects a revenue growth of 5%-7% and an EPS of $2.20-$2.50. Analysts from Deutsche Bank, B of A Securities, and Susquehanna have raised their price targets on Delta Air following the earnings announcement. Despite the positive report, Delta Air shares fell 2.3% to close at $46.24.

Portfolio Pulse from Avi Kapoor

April 11, 2024 | 1:26 pm

MCHI

Fitch Ratings has downgraded China's sovereign credit outlook to negative from stable, maintaining an 'A+' rating, due to concerns over the nation's public finances amid economic uncertainties. This follows a similar action by Moody's in December. China's government debt is expected to rise significantly, with projections showing an increase to 61.3% of GDP in 2024 from 56.1% in 2023. Despite signs of economic recovery, Fitch warns of broad fiscal deficits and escalating government debt. The iShares MSCI China ETF (MCHI) saw a slight increase of 0.90% to close at $40.50.

Portfolio Pulse from Benzinga Neuro

April 10, 2024 | 11:35 am

AZZ

GAST

MGMT

AZZ Inc. (NYSE:AZZ) has raised its FY25 sales and profit forecasts due to strong performance in several end markets. The company now expects sales between $1.525 billion and $1.625 billion, and adjusted EPS between $4.50 and $5.00. Adjusted EBITDA forecast has also been increased to $310 million - $360 million. AZZ plans to further deleverage by $60 million - $90 million and has seen a credit rating upgrade by S&P Global. The company focuses on organic growth in its Metal Coatings and Precoat Metals segments. AZZ shares rose 1.82% in premarket trading. Exposure to AZZ stock can also be gained through Ballast Small/Mid Cap ETF (NYSE:MGMT) and Gabelli Automation ETF (NYSE:GAST).

Portfolio Pulse from Lekha Gupta

April 08, 2024 | 12:43 pm

AAPL

AMC

AMZN

NVDA

With interest rates at their highest in over two decades, investors are increasingly turning to corporate bonds, seeking higher yields and diversification from equities. Investment-grade bonds, issued by stable companies, offer safer investment options compared to high-yield bonds from riskier firms. Companies like Nvidia, Amazon, Apple, Eli Lilly, and Walt Disney are rated as investment grade, while AMC Entertainment, Office Property Income Trust, and Navient Corporation are considered speculative grade. The article lists the top 10 investment-grade corporate bonds with the highest yields as of April 2024, including issuers like Prospect Capital, Piedmont Office Realty Trust, Td Synnex Corp, Charter Communications, Vornado Realty Trust, Ford Motor Co, Monsanto (owned by Bayer A.G.), Vici Properties, Ally Financial, and Concentrix Corp.

Portfolio Pulse from Piero Cingari

April 05, 2024 | 4:24 pm

PARA

Skydance Media, RedBird Capital, and KKR are in exclusive talks with Paramount Global for a significant stake, potentially leading to a merger with Skydance's studio. The deal, still under negotiation, could see Skydance and partners owning around 45% to just over 50% of Paramount Global. The transaction aims to transform Paramount into a more future-focused media company, leveraging Oracle's technology. Paramount Global's financial struggles include a 1.7% revenue decline in 2023 and a downgrade to junk status by S&P Global Ratings. Other potential buyers like Apollo Global Management and Warner Bros. Discovery have shown interest in Paramount Global.

Portfolio Pulse from Benzinga Newsdesk

April 05, 2024 | 3:12 pm