Article Comment 

Navistar's credit rating falls a notch

 

The Associated Press

 

NEW YORK -- Credit ratings agency Standard & Poor's on Friday cut the credit rating of truck and engine Navistar International Corp. by one notch, citing the poor second-quarter results it posted Monday. 

 

S&P cut the Lisle, Ill., company's rating to "B-" from "B," putting it six rungs below investment grade. 

 

S&P said it considers Navistar's liquidity to be "less than adequate," but still sufficient to pursue its strategy of winning back lost market share over the next year. 

 

The agency kept a negative outlook on the company's credit rating, reflecting a view that Navistar will continue to generate large losses. 

 

On Monday, the company said it lost $374 million, or $4.65 per share, in the fiscal second quarter, which ended April 30. That was more than the loss of $172 million, or $2.50 per share, it posted in the same period last year, but the previous year's included a $181 million gain related to deferred tax assets in Canada. 

 

Revenue came in at $2.53 billion, below the $2.84 billion Wall Street expected and 23 percent below last year's figure. 

 

Navistar shares fell 9 cents to close Friday at $31. The shares are down 9.6 percent since it released its second-quarter results.

 

 

 

printer friendly version | back to top

 

 

 

 

 

Follow Us:

Follow Us on Facebook

Follow Us on Twitter

Follow Us via Instagram

Follow Us via Email