Bombardier cheers credit rating upgrade from Moody's

Executive Summary

• Moody's has upgraded Bombardier Inc.'s credit rating from B1 to Ba3, marking the company's return to the Ba/BB investment-grade category with both Moody's and S&P for the first time in over a decade.
• The upgrade is accompanied by a positive outlook and reflects strong execution, solid financial performance, and disciplined deleveraging efforts.
• Management cites a robust backlog, expansion in services and defense businesses, and a solid financial foundation as key drivers for the improved long-term outlook.

Key Details

• Rating Action: Moody's upgraded Bombardier's credit rating from B1 to Ba3.
• Outlook: Positive.
• Significance: This is the first time in over a decade that Bombardier has held Ba/BB category ratings with both Moody's and S&P.
• Drivers for Upgrade:
  • Strong and consistent execution across business segments.
  • Solid financial performance.
  • Disciplined deleveraging efforts over recent years.
  • Robust backlog ensuring visibility on future deliveries.
  • Continued expansion of services and defense businesses.
  • Diversified and resilient revenue streams.

Notable Quotes

• "This achievement reflects the company's strong and consistent execution across business segments, solid financial performance and disciplined deleveraging efforts over recent years. With a robust backlog ensuring visibility on future deliveries and the continued expansion of our services and defence businesses, we are building diversified and resilient revenue streams that strengthen our long-term outlook." — Bart Demosky, Executive Vice President and CFO, Bombardier