Rolls-royce Share Discussion Threads

[davethehorse] 28/9/2020 13:16

Would sell out until things look clearer

[dope007] 28/9/2020 11:42

This stock is a definite wait and see. They need cash, a lot of cash, and until that is raised you cannot attach a sensible price to the stock to buy at

[alexios1201] 28/9/2020 10:52

Going by JPM pushdown this rumoured 100p cash call looks a bit ambitious

[alexios1201] 28/9/2020 10:51

Rolls Royce : JP Morgan cuts target price to 65p from 80pThat's near 20year lows

[dartboard1] 28/9/2020 10:41

Split up Defence and Power, two separate LSE listings, sell commercial air to PE for a £1, plus earn-out that gives a small share in any recovery.. this would be more shareholder friendly than diluting by 2.5bn

[dealy] 28/9/2020 10:05

total hysteria going on with this share. They have many avenues open to them. Covid crisis probably over by March as well.

[zee4you] 28/9/2020 08:42

RR will bounce back the defence sector alone is worth more then the current market cap. This is way too oversold just on fear of RI even though management has been rubbish at tackling things i dont see this going lower then 130 even with an RI. Things are gettung better for air travel certainly more flights then couple of months back.

[buywell3] 28/9/2020 08:26

Just think about all those people with money/savings/pensions in FTSE 100 Trackers

[albert3591] 28/9/2020 08:22

Just don’t know when to buy,I am going to wait.If I miss out so be it,but it must be near it’s low now.

[ny boy] 28/9/2020 08:14

I’m interested closer to 100/110p area

[ny boy] 27/9/2020 23:52

Sharecast News) - Rolls-Royce is poised to tap investors for £2.5billion at a steep discount to the current share price to solve its funding crisis, The Mail on Sunday understands. City sources said it was considering pricing the cash call at £1 per share - 35 per cent below Friday's closing price of £1.54. - Mail on Sunday

[alexios1201] 27/9/2020 20:36

Moody's downgrades Rolls-Royce to Ba3 from Ba2; outlook remains negative25 Sep 2020London, 25 September 2020 -- Moody's Investors Service ("Moody's") has today downgraded the corporate family rating (CFR) of Rolls-Royce plc (Rolls-Royce or the company) to Ba3 from Ba2. Concurrently Moody's has downgraded the company's long-term senior unsecured rating to Ba3 from Ba2. The outlook remains negative.Today's rating action reflects:• A worsening outlook for recovery of flight hours and deliveries in the company's large commercial engine division over the remainder of 2020 and in 2021• Expectations for cash outflows in 2020 and 2021 at the higher end of Moody's estimates, which could put pressure on liquidity and balance sheet metrics in the absence of further finance raising• Whilst the company is evaluating potential equity and debt issuance, which would be credit positive, concerns that this would not be sufficient to maintain a balance sheet commensurate with a Ba2 ratingMoody's has also downgraded the rating on the company's senior unsecured Euro Medium Term Notes (EMTN) programme to (P)Ba3 from (P)Ba2, downgraded the notes issued under the EMTN programme to Ba3 from Ba2, and downgraded the company's probability of default rating to Ba3-PD from Ba2-PD.RATINGS RATIONALEThe company's Ba3 corporate family rating reflects: 1) high barriers to entry given the critical technological content of the company's engines; 2) the solid performance of the company's defence division and its diverse revenues across different end markets; 3) the strong to date performance of the company's Trent XWB and Trent 7000 engine programmes which represent the majority of future orders and installed engine base; 4) the strategic importance of the company to UK defence capabilities and to the aerospace supply chain, resulting in a high likelihood of government support if required as a result of the coronavirus outbreak; and 5) the company's commitment to a conservative financial profile.The rating also reflects: 1) a weakening environment for commercial aerospace in view of a slow recovery of engine flight hours pressured by travel restrictions, quarantine measures and broader coronavirus outbreaks across several regions; 2) Moody's expectations for substantial free cash outflows in 2020 and 2021 and possibly beyond, leading to increases in leverage which the company faces challenges to recover over the next 2-3 years; 3) high uncertainties over the progression of the coronavirus pandemic which could lead to further material cash outflows; 4) execution risks in implementing a material restructuring programme whilst maintaining operational effectiveness and competitive position; 5) ongoing execution risks in concluding fixes relating to the Trent 1000 engine programme; and 6) a degree of concentration risk with reliance on a small number of commercial aerospace engines for widebody aircraft.The outlook for the recovery of global air passenger volumes has deteriorated in recent weeks as European countries have reintroduced quarantine measures and travel restrictions remain in place globally particularly on long haul routes that are critical to Rolls-Royce's engine fleet. This is expected to drive a weak recovery in the fourth quarter of 2020 and during 2021, and may put further pressure on demand and production rates for large commercial aircraft. As a result Moody's expects the sector recovery to be at the lower end of its expectations. This is partially mitigated by the company's relatively young aircraft engine fleet and broad geographic mix of markets served. Rolls-Royce assumes in its "severe but plausible downside scenario" outlined its half-year results, that engine flight hours will reduce by 64% in 2020 compared to 2019 and recover by 28% in 2021, i.e. remaining 55% below 2019 levels. Given the current outlook there is a high probability that flight hours are in line with or worse than this scenario.At its half year results the company's auditors emphasized going concern issues in the event that the severe but plausible downside scenario occurs, which would require additional funding in order to maintain sufficient liquidity. This would include the replacement of the company's GBP1.9 billion revolving credit facility maturing in October 2021, and further funding over and above. Cash outflows in a weaker recovery scenario would be driven by engine shop visit costs, which Moody's does not expect to reduce in line with flight hours, and potential costs of over-hedging of foreign exchange.The company has stated that it is evaluating potential fund raising including up to a GBP2.5 billion equity rights issue, and additional debt issuance. Whilst this would be credit positive Moody's expects these transactions primarily to address liquidity concerns rather than materially repair the balance sheet. There remain risks that additional financing would still be required depending on amounts raised and the evolution of trading, which if not addressed could lead to further pressure on ratings.The company has also reported its intentions to dispose of certain trading assets, including ITP Aero, with target proceeds in excess of GBP2 billion. Moody's does not include any disposals in its credit assessment at this stage in view of uncertainties over execution.In August Rolls-Royce reported that blade deterioration in the intermediate pressure turbine had been detected on around 20% of its XWB-84 engines of 4-5 years' service. The company is replacing the blades as a precaution at existing shop visits and does not expect material additional costs. The XWB has been a successful programme with strong performance to date. Rolls-Royce does not yet know the cause of the problem and therefore cannot give absolute certainty over fix costs, although the costs of the interim solution should be relatively predictable. Moody's considers there remains a low risk of a material issue arising, but it is an unwelcome development and takes the company one step closer to a larger problem, however low risk at this stage.Moody's considers that the potential for support from the UK Government (Aa2, negative) remains high, as evidenced by the recent guarantee from UK Export Finance in support of the company's GBP2 billion term loan. The UK Government retains a "golden share" in Rolls-Royce which limits individual share ownership and indicates the company's strategic importance.

[alexios1201] 27/9/2020 20:26

Alliance News) - Moody's Investors Service on Friday downgraded Rolls-Royce Holdings PLC's corporate family rating, offering a bleak outlook for the jet engine maker's balance sheet should it not turn to fundraising.Rolls-Royce's CFR rating was nudged down to Ba3 from Ba2, with the outlook remaining negative."Today's rating action reflects a worsening outlook for recovery of flight hours and deliveries in the company's large commercial engine division over the remainder of 2020 and in 2021," Moody's said.The Covid-19 pandemic has sapped demand for air travel and emptied skies, hurting both carriers and aftermarket providers such as Rolls-Royce."The ratings added that the company's expectations for cash outflows in 2020 and 2021 are at the "higher end of Moody's estimates".This "could put pressure on liquidity and balance sheet metrics in the absence of further finance raising".Rolls-Royce earlier on Friday noted what it called "continued media speculation" regarding the possibility of undertaking a fundraising, but the jet engine maker said that no final decision had been taken.Sky News reported on Friday afternoon that the Kuwait Investment Office was in talks with the Trent 1000 engine maker about its potential GBP2.5 billion fundraising. In addition, the Financial Times, citing three people with direct knowledge of the matter, had reported on Sunday that Rolls-Royce was in talks with sovereign wealth funds, including Singapore's GIC, to raise GBP2.5 billion in October.Moody's said there are concerns a fundraise "would not be sufficient to maintain a balance sheet commensurate with a Ba2 rating", another reason for Friday's downgrade.Rolls-Royce shares closed up 3.1% at 154.75 pence on Friday but are down 77% so far in 2020.By Eric Cunha; [e-mail]

[blueball] 27/9/2020 20:07

50p tomorrow ..?

[albert3591] 27/9/2020 18:06

Must be a joining together of some of these type of companies.

[vikingwarrier] 27/9/2020 18:04

Maybe BAE Systems will take them over.

[albert3591] 27/9/2020 18:01

Glad I didn’t buy at 157.also at 165 fortunate to say the least.Good luck if you are holding.

[hamhamham1] 27/9/2020 17:39

I think it's going up.
Time will tell.

[costax1654x] 27/9/2020 16:21

100p raise