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Bombardier Upgraded to Ba2 by Moody’s
August 17, 2026
– Vandit P
Bombardier Inc. was upgraded by a notch to Ba2 from Ba3 by Moody’s. The rating action reflects the company’s sustained progress in deleveraging its balance sheet, driven by robust cash flow generation, margin expansion, and revenue growth within its aftermarket and defense segments. Bombardier’s adjusted EBIT margin rose to 11.4% as of June 2026 and it has generated positive free cash flow since 2021 with Moody’s expecting ~$1bn of free cash flow in 2026. Revenue visibility is reinforced by a $21.8bn backlog and a 1.5x book-to-bill ratio for 1H2026, complemented by $1.1bn in YTD net debt repayments. According to Moody’s, Bombardier’s liquidity remains strong with $3bn in available sources through June 2027 against $50mn in obligations and no meaningful debt maturities until 2030. The liquidity sources comprise of $1.5bn in cash, a fully available $750mn revolving facility maturing in 2031, and strong operational cash flows. However, Bombardier’s credit profile is constrained by the cyclical nature of the business jet industry, ongoing supply chain risks, and high fixed charges of ~$650mn annually for interest and capital expenditures.
Bombardier’s 7% 2032s were stable at 103.7, yielding 6.2%
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