- The Bombardier (TSX:BBD.A) team touted the recent upgrade from credit rating agency Moody’s, giving it a B1 rating with a stable outlook
- A B1 reflects its expectations for near 100 per cent recovery of principal and interest, though the rating still judges the stock as being speculative and holds a high credit risk
- The Canadian business jet manufacturer has worked to find ways to build its resilience through growth pathways that can diversify revenue streams while creating additional margin and cash upside.
- Bombardier stock (TSX:BBD.A) last traded at C$69.91 per share
The Bombardier (TSX:BBD.A) team touted the recent upgrade from credit rating agency Moody’s, giving the jet manufacturer a B1 rating with a stable outlook.
According to Moody’s ratings, a B1 reflects its expectations for near 100 per cent recovery of principal and interest, though the rating still judges the stock as being speculative and holds a high credit risk.
The Canadian business jet manufacturer has worked to find ways to build its resilience through growth pathways that can diversify revenue streams while creating additional margin and cash upside.
Businesses that are more dynamic like services and defense can add value to the company by offering customers unique solutions.
Management insights
“As we outlined in our 2024 Investor Day this week, we have a strong foundation upon which to keep improving key balance sheet metrics,” Bart Demosky, Bombardier’s executive vice president and CFO, wrote in an open letter. “We have created a lot of momentum, that is well embodied in the launch of our new forward-looking brand identity. Over the past years, Bombardier team members across our various businesses have executed (the) plan to near perfection, intently focused on what we control. This approach continues to raise us to higher altitudes of performance on debt reduction, earnings and positive free cash flow generation.”
Landing impressive deals
Earlier this week, Bombardier unveiled that one of its longtime anonymous clients was NetJets, which purchased 12 Challenger 3500 aircraft in December 2023.
Built on the industry’s most delivered super-midsize platform, the Challenger 3500 jet offers a range of 6,297 kilometres and the most technologically advanced cabin in its class.
About Bombardier
Bombardier designs, builds, modifies and maintains high-performance aircraft for business and defense.
Bombardier Inc. stock (TSX:BBD.A) last traded at C$69.91 per share. The stock has added 16.18 per cent year-over-year, and an immense 2,948.03 per cent since 2019.
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