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Feb. 5, 2021, 2:58 p.m. EST

Hexcel stock falls after credit rating cut to 'junk' status at S&P Global Ratings

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By Tomi Kilgore

Shares of Hexcel Corp. /zigman2/quotes/209574944/composite HXL -3.10% fell 0.8% in afternoon trading Friday, after the credit of the maker of materials used for commercial aerospace and space and defense industries was downgraded into "junk" territory, with potential for further downgrades. S&P Global Ratings cut Hexcel's issuer credit rating to BB+ , the credit rating agency's highest speculative-grade rating, from BBB-, while the outlook remained negative. S&P said Hexcel's credit metrics are likely to remain weak through 2021 because of the COVID-19 pandemic, as demand for Hexcel's products has been significantly affected by the reduced rebuild rates across all platforms at original equipment manufacturers Boeing Co. /zigman2/quotes/208579720/composite BA -2.22% and Airbus S.E. /zigman2/quotes/200706109/composite EADSY -0.07% /zigman2/quotes/203006799/delayed XE:AIR -0.24% . "[D]ue to its position early on in the supply chain, Hexcel has seen a faster and more pronounced drop in its demand because its customers are choosing to use their existing inventory to preserve cash," S&P said. "We expect this destocking to continue into the second quarter of 2021." Boeing credit is rated BBB-, which is S&P's lowest investment grade rating, and Airbus credit is rated A. Meanwhile, S&P rival Moody's Investors Service rates Hexcel credit at Baa3, which is Moody's lowest investment grade rating. Hexcel's stock has tumbled 36.6% over the past 12 months, while the S&P 500 /zigman2/quotes/210599714/realtime SPX -0.54% has gained 16.5%.

/zigman2/quotes/209574944/composite
US : U.S.: NYSE
$ 54.42
-1.74 -3.10%
Volume: 806,804
July 30, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
$4.56 billion
Rev. per Employee
$324,080
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/zigman2/quotes/208579720/composite
US : U.S.: NYSE
$ 226.48
-5.15 -2.22%
Volume: 9.94M
July 30, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
$132.75 billion
Rev. per Employee
$412,489
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/zigman2/quotes/200706109/composite
US : U.S.: OTC
$ 34.33
-0.03 -0.07%
Volume: 125,460
July 30, 2021 3:57p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
$107.78 billion
Rev. per Employee
$433,185
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/zigman2/quotes/203006799/delayed
XE : Germany: Xetra
115.72
-0.28 -0.24%
Volume: 139,047
July 30, 2021 6:30p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
€90.89 billion
Rev. per Employee
€379,995
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/zigman2/quotes/210599714/realtime
US : S&P US
4,395.26
-23.89 -0.54%
Volume: 2.25B
July 30, 2021 5:06p
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