Bombardier Inc. T.BBD.A

Alternate Symbol(s): BDRXF | BDRAF | BDRBF | T.BBD.B | T.BBD.PR.B | T.BBD.PR.C | BOMBF | T.BBD.PR.D | BDRPF

Industrials Aerospace & Defense

Bombardier Inc. is focused on designing, manufacturing, and servicing business jets. The Company has a fleet of approximately 5,000 aircraft in service with a wide variety of multinational corporations, charter and fractional ownership providers, governments, and private individuals. The Company designs, develops, manufactures and markets two families of business jets (Challenger and Global), spanning from the mid-size to large categories. The Company also provides aftermarket support for both of these aircraft, as well as for the Learjet family of aircraft. The Company's robust customer support network services the Learjet, Challenger, and Global families of aircraft, and includes facilities in strategic locations in the United States and Canada, as well as in the United Kingdom, Germany, France, Switzerland, Italy, Austria, The United Arab Emirates, Singapore, China and Australia. Its jets include Challenger 300, Challenger 350, Challenger 3500, Global 5000, Global 5500, Global 6000.

TSX:BBD.A - Post by User

Bombardier Inc. > Moody's rationale

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Comment by BBDB859on Jan 20, 2023 3:31pm

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Post# 35236346

RE:RE:RE:Moody's rationale

Temp. the BBB rating is inevitable. In the end of 2024 we're there. They'll get to it when the reach $4.5B in LTD, with $1.3B in EBITDA. That will be the end of 2023 This year (2023) we'll be at $4.9B LTD. So investment grade is a given. Just follow the pace of growth for EBITDA since 2021. It's growing at an exciting pace. Pure play has nothing to do with EBITDA growth. It has to do with financial risk exposure to one product. I get it. Though think of this. CP has 1 product too. We're in one of the most awkward times financially and yet this Pure Play is holding its own. It's even steadily increasing EBITDA on a good pace. While reducing Debt steadily.

lb1temporary wrote: We can forget the BBB's investment grade Bombardier as a pure player is fully exposed to volatility (for profits) by the Bizjet market, a highly cyclical one. It could not offer the stability asked for an Investment grade rating.

Anyway, too low debt is not a good thing for Bombardier, it is preferable that it has a reasonable amount of debt (enough but not too much) in order to offer a high yield at the top of the cycle.

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