S&P Global Ratings affirmed Textron Inc.'s issuer credit ratings at BBB/A-2 and placed them on CreditWatch with negative implications on the likelihood of a reduction in demand due to the coronavirus pandemic.
The rating agency said demand for the company's business jets, commercial helicopters, auto fuel tanks and specialized vehicles could suffer during the virus outbreak, likely weighing on revenue and earnings. Textron has already implemented furloughs for its aviation segment for the next 10 weeks.
In particular, S&P expects Textron's Kautex business to see a significant decline in demand, as auto manufacturers scale back on production.
The rating agency added that Textron's liquidity remains sufficient to meet its upcoming operational and financial needs.
This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings. Descriptions in this news article were not prepared by S&P Global Ratings.