26 August 2026

Moody’s Upgrades Bombardier Credit Rating to Ba2

Why this article matters
The upgrade lands alongside a strong set of Bombardier's own second-quarter results, record services revenue, a 1.5 unit book-to-bill ratio and no debt maturities before November 2030, giving Moody's action more substance than the rating change alone. For African operators and lessors financing Global and Challenger aircraft, an improved credit profile at Ba2, still within speculative grade but moving up within it, points toward potentially more favourable financing terms as Bombardier's balance sheet continues to strengthen.

Of Interest
- Moody's has upgraded Bombardier's credit rating to Ba2 from Ba3, maintaining a positive outlook — its second upgrade from the agency in the past 12 months.
- Bombardier's second-quarter revenue reached US$2.15 billion, up 6% year on year, with free cash flow of US$228 million and an order backlog of US$21.8 billion, up US$4.3 billion since the end of 2025.
- The company reduced debt by US$356 million during the quarter and has no debt maturities before November 2030; available liquidity stood at approximately US$1.9 billion.
- Services revenue reached a record US$674 million (+14% year on year); Bombardier delivered 32 aircraft during the quarter, with a unit book-to-bill ratio of 1.5.

Moody's Ratings has upgraded Bombardier's credit rating from Ba3 to Ba2 while maintaining a positive outlook, marking the second upgrade from the agency for the aircraft manufacturer in the past 12 months.

Bombardier said the latest rating action reflects progress in strengthening its financial position, including continued debt reduction, earnings growth, free cash flow generation and greater revenue diversification through its Services and Defense businesses.

Bart Demosky, Executive Vice President and Chief Financial Officer at Bombardier, said the upgrade recognised the company's operational performance and financial progress.

“Moody's upgrade of Bombardier's credit rating from Ba3 to Ba2, while maintaining a positive outlook, is a clear recognition of the progress we have made in strengthening our business and financial profile.”

The rating change follows Bombardier's second-quarter results, published on 30 July, when the company reported revenues of US$2.15 billion, up 6% year on year, and free cash flow of US$228 million. Its order backlog stood at US$21.8 billion at the end of June, an increase of US$4.3 billion from the end of 2025.

Bombardier also reduced debt by US$356 million through repayment and refinancing transactions during the quarter. Following the transactions, the company said it had no debt maturities before November 2030. Available liquidity stood at approximately US$1.9 billion, including US$1.5 billion in cash and cash equivalents.

Services revenue reached a record US$674 million during the quarter, up 14% year on year, while Bombardier delivered 32 aircraft. Demand, particularly for the Global 8000, contributed to a second-quarter unit book-to-bill ratio of 1.5.

Demosky said Bombardier continued to benefit from its backlog and growth prospects across its business lines, adding that the company remained focused on further strengthening its financial profile.

The Ba2 rating remains within Moody's speculative-grade category. Under the agency's long-term rating scale, Ba ratings are considered speculative and subject to substantial credit risk, with Ba2 representing the middle of the Ba category. The positive outlook signals the potential direction of a future rating action but does not constitute a further upgrade.