04 May, 2023

Bombardier gets new credit rating from S&P

Bombardier has announced that S&P Global Ratings has upgraded the company’s credit rating from B- to B, citing solid execution, successful deleveraging efforts, backlog stability and effective management of supply chain risks as contributing factors as part of a release issued on May 1, 2023. S&P Global Ratings’ outlook for Bombardier remains stable.  

“This upgrade comes on the heels of a solid first quarter and reflects the company’s positive trajectory toward its objectives. This enhanced rating is a testament to Bombardier’s solid plan and financial discipline, as well as to the commitment of its talented teams,” said Bart Demosky, Executive Vice President and Chief Financial Officer. “We remain focused on delivering a robust and predictable financial performance, all while providing an incredible experience to our valued customers.”  

As part of its recently published quarterly results for Q1 2023, Bombardier reported positive net income as well as higher year-over-year revenues and profit margins. During the first three months of 2023, Bombardier also continued its strong progress on debt reduction with a repayment of approximately $400 million from cash on balance sheet and ended the first three months of 2023 with a stable, diversified $14.8 billion dollar backlog. Also, during the first quarter, Moody’s Investors Service upgraded Bombardier’s corporate family and Senior unsecured notes rating to B2.  

“Allow me to reiterate that I am very pleased with how we have started 2023,” added Demosky. “We have built Bombardier to perform well with a solid company structure, and we continue to show great progress toward our raised 2025 objectives.”