- Moody's has lowered its rating on Rolls-Royce (OTCPK:RYCEY) over cash flow concerns, a week after the company reported an extra charge to cover costs for its engine program and said it has spent £100M preparing for a no-deal Brexit.
- Its rating on long-term senior unsecured debt was downgraded to Baa1 from A3, while its outlook was switched to stable from negative.
- This reflects the "expectation that target free cash flow in 2019 will include working capital gains, which are not considered sustainable" and that it will be similarly supported in 2020.