Breaking: S&P Now "Positive" on Tesla Bonds
Outlook boosted from "positive" to "negative"
Standard & Poor’s bumped its outlook on Tesla bonds to "Positive" from "Negative" on "recent debt reduction & stronger-than-expected cash flow."
Trouble is ~$1 billion in LTM EBITDA, pre-tax "profit," and CFFO/FCF came from nonrecurring/nonoperating items and accounting maneuvers which are unsustainable and which "improved" leverage to still high 6.3x vs unvarnished 11.6x.
No worries. S&P expects Tesla’s leverage to decline “and stay around 3.5-4x in 2020, albeit with some volatility.”
Oh, you betcha.
Look for more discussion in an upcoming Bond Angle report out soon.
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