Business Aviation
Bombardier Credit Rating Upgrade by Moody’s to Ba3 with Positive Outlook
Bombardier’s credit rating upgraded to Ba3 by Moody’s, supported by strong Q3 2025 financials and strategic debt reduction efforts.
This article is based on an official press release from Bombardier Inc. and supporting financial data. See the original release for full details.
On December 1, 2025, Bombardier Inc. announced a significant financial milestone as Moody’s Ratings upgraded the company’s corporate credit rating from B1 to Ba3. The rating agency also assigned a positive outlook to the Canadian business jet manufacturer. This development marks a pivotal moment in Bombardier’s multi-year turnaround strategy, placing its credit ratings in the Ba/BB category with both major rating agencies for the first first time in over a decade.
According to the company’s official statement, this upgrade reflects consistent operational execution and a strengthened balance sheet. The move by Moody’s follows a similar upgrade by S&P Global Ratings in June 2025, which raised Bombardier to BB- with a stable outlook. Collectively, these ratings signal a material reduction in credit risk and validate the company’s transition into a pure-play business aviation entity.
The upgrade is underpinned by robust financial performance reported throughout 2025. In its third-quarter financial results, released in November, Bombardier reported revenues of $2.3 billion, representing an 11% year-over-year increase. The company also highlighted a 16% rise in adjusted EBITDA to $356 million, with margins expanding to 15.4%.
Central to the rating agencies’ confidence is Bombardier’s aggressive deleveraging campaign. Since launching its turnaround plan in 2020, the company has reduced its total debt by more than $4.5 billion. Recent fiscal management actions include:
Additionally, the company generated $152 million in free cash flow during the third quarter of 2025, a substantial improvement of $279 million compared to the same period in the previous year.
Bart Demosky, Executive Vice President and CFO of Bombardier, issued a statement emphasizing the strategic importance of returning to the Ba/BB rating tier. He attributed the achievement to the company’s disciplined capital allocation and the successful expansion of its aftermarket and defense segments.
“With a robust backlog ensuring visibility on future deliveries and the continued expansion of our Services and Defense businesses, we are building diversified and resilient revenue streams that strengthen our long-term outlook.”
— Bart Demosky, Executive Vice President and CFO, Bombardier
Demosky noted that the “positive” outlook attached to the Moody’s rating suggests the potential for further upgrades if the company maintains its current trajectory over the next 12 to 18 months. While the recovery of the private aviation market has been central to Bombardier’s success, we observe that the diversification into defense and specialized aircraft is a critical factor in stabilizing its credit profile. The company is forecasting its defense division revenues to triple to over $1 billion by the second half of the decade. Unlike the cyclical nature of private jet sales, government defense contracts provide long-term, predictable revenue streams that appeal to credit rating agencies.
Furthermore, the growth of the aftermarket services segment, which grew 12% year-over-year in Q3 2025 to $590 million, provides a steady cash flow buffer that insulates the company from manufacturing volatility. With a backlog standing at $16.6 billion as of September 30, 2025, Bombardier appears well-positioned to defend its new credit standing.
Sources: Bombardier Press Release, Moody’s Ratings, S&P Global Ratings.
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Photo Credit: Bombardier