RE:RE:RE:Moody's rationaleTemp. 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.