Moody’s cuts Fletcher Building’s credit rating
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The news: Ratings agency Moody’s has downgraded Fletcher Building’s credit rating in a fresh setback for the troubled building products supplier.
The numbers: Moody’s cut the dual-listed company’s credit rating to Baa3 with a negative outlook from its previous rating of Baa2 on a stable outlook. The new rating also applies to Fletcher’s medium term notes.
Fletcher shares, which have tumbled by a third so far this year, were trading 0.9% lower at $2.93.
The context: The Moody’s downgrade comes after Fletcher last month cut its full-year earnings guidance in a slowing market, prompting a number of analysts to also lower their earnings estimate and price targets on the stock.
The NZX and ASX-listed company has seen several top management departures in recent months, as it faces shareholder discontent over the half-year loss and its share price performance.
Fletcher has racked up further provisions against troubled construction projects for SkyCity in Auckland and at Wellington Airport.
The source: ASX announcement
