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Moody's downgrades Rolls-Royce's credit rating to junk; outlook negative

Shares in Rolls-Royce, which have already lost almost two-thirds of their value during the pandemic, dropped 5.7% to trade at 253 pence at 0827 GMT, after Moody's statement

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Earlier in July, Rolls said it had 8.1 billion pounds ($10.4 billion) at hand even after the first-half outflow.

2 min read Last Updated : Jul 27 2020 | 6:08 PM IST

Ratings agency Moody's on Monday downgraded the long-term senior unsecured bonds of Rolls-Royce to junk status, saying that the aviation market served by the British engineering firm has weakened and could fall further.

Moody's cut its ratings on the UK-based engine-maker's bonds by two notches to Ba2 from Baa3, meaning its bonds are now regarded as non-investment grade, and also gave the company as a whole a Ba2 rating with a negative outlook.

Shares in Rolls-Royce, which have already lost almost two-thirds of their value during the pandemic, dropped 5.7% to trade at 253 pence at 0827 GMT, after Moody's

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