12:10 p.m. Oct. 8, 2020
- By Claudia Assis
JetBlue's debt downgraded deeper into junk territory by Fitch Fitch Ratings on Thursday downgraded JetBlue Airways Corp.'s debt one notch deeper into high-yield bonds, to BB- from BB. A "recovery in air traffic will be slower than previously anticipated," hampering JetBlue and other airlines' efforts to drum up business until COVID-19 cases decrease or until treatment or a vaccine against the virus become available. JetBlue's cash burn is likely to "remain material well into 2021," Fitch said. The ratings agency also worried about the airline's going deeper into debt, which helped it with liquidity but puts pressure on the airline's debt metrics in the longer term, it said. Airlines have been "proactive" in cutting capacity as demand has lagged, Fitch said. As capacity increases, so will costs, "and JetBlue will not see the same types of cost savings that some larger carriers will see from things like fleet retirements and management headcount reduction," the ratings agency said. "However, JetBlue is starting from a lower cost base, which Fitch believes puts the company in a better position to recover from the downturn." Air-travel demand recovered some from April's trough, but the pace of recovery slowed as reported cases began to rise again in June. "Fitch expects traffic levels to remain anemic until case levels improve substantially or until more effective treatments or a vaccine become widely available," it said. Shares of JetBlue edged higher in the extended session Thursday after ending the regular trading day up 3.7%.
11:02 a.m. May 23, 2020
- By Howard Gold
Warren Buffett has lost at least $7 billion from his last 3 big investments Berkshire Hathaway’s recent track record is really, really badBerkshire Hathaway’s recent track record is really, really bad.
2:51 a.m. May 7, 2020
- By Ciara Linnane
Fitch downgrades General Motors rating to one notch above junk Fitch Ratings downgraded General Motors Co.'s long-term issuer default rating to BBB-minus from BBB, putting it one notch above junk status. The rating agency also downgraded GM Financial's IDR to BBB-minus, and said both ratings outlooks are stable. The move is based on the expectation that the auto giant's credit profile will remain weak for a prolonged period, against the macroeconomic environment caused by the coronavirus pandemic. "Fitch expects the macro environment to remain weak through the rest of 2020 and much of 2021, which will likely keep sales volumes well below the 2019 level into much of 2022," the agency said in a statement. "The company's more concentrated operations, with its automotive FCF completely dependent on the North American and Chinese auto markets, could also pose some risk in the future, although it has resulted in less cash burn in the current environment." GM's ratings and stable outlook reflect the company's strong liquidity position and the expectation that it will retain and investment-grade rating once the peak of the pandemic has passed. GM shares were up 1.8% premarket, but have fallen 40% in the year to date, while the S&P 500 has fallen 12%.
1:03 a.m. April 29, 2020
- By Barbara Kollmeyer
European stocks struggle amid earnings deluge, but banks and oil companies rise IAG tumbles after BA announces 12,000 job cutsEuropean stocks struggled for traction on Wednesday, on a busy day for earnings that overall reflected the deep difficulties facing companies amid the coronavirus outbreak.