Providence-based Textron Inc.’s long-term and short-term debt ratings were downgraded by Moody’s Investor’s Service, which cited concerns about restructuring efforts and effect of the Sept. 11 terrorist attacks on the maker of Bell helicopters and Cessna planes.
Textron’s senior unsecured long-term debt rating was lowered to “A3” from “A2,” Moody’s said. The Providence, Rhode Island- based company’s short-term debt rating was reduced to “Prime-2” from “Prime-1,” Moody’s said.
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The rating cuts are based on concerns about the timing and effectiveness of the company’s restructuring plan and the potential effect of the terrorist attacks on its aircraft business, which accounts for about 44 percent of Textron’s sales, Moody’s said.
Shares of Textron fell 21 cents to $37.60. They’ve fallen 19 percent this year. Textron said in October that it had a third- quarter loss after it was hurt by expenses for plant closings and firings and delays in producing military aircraft.
Bloomberg
