Bombardier was upgraded to B2 from B3 by Moody’s on the back of “continued progress in reducing debt, [and] its continued improvement in financial performance”. Improved earnings, margins and positive free cash flows were all part of the overall progress seen in the aircraft company’s finances. Bombardier has generated positive free cash flow in each quarter since June 2021. Its operating margins have risen to 7.9% in 2022 vs. 4.6% a year ago with strong revenue visibility. They also continue to repay their debt and have no meaningful maturities until 2026, Moody’s notes. Bombardier has about $1.8bn of available liquidity sources, a strong number over the next year. It also has significant scale and a strong market position as per Moody’s. To add to the positives, they have a $14.8bn order backlog that further consolidates its strength.
Bombardier’s dollar bonds were trading stable with its 7.125% 2026s at 101.38, yielding 6.63%.