Bombardier Lands Second Moody’s Upgrade in a Year as Debt Falls and Cash Flow Strengthens

Moody's Ratings upgraded Bombardier's corporate family rating to Ba2 from Ba3 on August 14, keeping its outlook positive. It's the company's second Moody's upgrade in 12 months, and it lands on the back of real deleveraging, not just sentiment.Cash flow up, debt coming downMoody's lead analyst Will Gu tied the move to Bombardier's shrinking leverage, driven by cash flow that keeps improving as margins and revenue climb, particularly in aftermarket and defense. The numbers back that up: Bombardier has posted positive free cash flow every year since 2021, and Moody's expects roughly $1 billion of it in 2026. Adjusted EBIT margin has moved from 10.1% in 2023 to 11.4% over the 12 months through June. The company also paid down about $1.1 billion in net debt over the past year, with Moody's flagging that more early repayment is possible.Order visibility helps the case too; Bombardier carried a $21.8 billion backlog and a 1.5x book-to-bill ratio through the first half of 2026, meaning it booked more new business than it delivered.The cash cushion is bigger than the bills coming dueMoody's puts Bombardier's available liquidity at about $3 billion against roughly $50 million in near-term obligations through June 2027, a gap wide enough that a bad quarter wouldn't put the company in a bind. That liquidity is $1.5 billion in cash plus an undrawn $750 million revolving credit line, and there's no meaningful debt coming due until 2030, which buys Bombardier years of runway regardless of where the business-jet cycle sits.None of this erases the risks Moody's still lists: business jets sell in cycles, competition is real, supply chains remain tight, and Bombardier still carries about $650 million a year in combined interest and capital spending. But the agency said it could upgrade again if debt stays under three times EBITDA while cash flow holds up, and would only move the other way on a real operating stumble, delivery problems, or leverage climbing back above four times.In a statement from Bombardier CFO Bart Demosky, he called the upgrade a recognition of the company's financial turnaround, noting the strong backlog and growth across every business line and expressing confidence that the momentum will continue.What a credit upgrade means for someone buying usedNone of this shows up on a Global 7500's spec sheet, but it shapes what happens after the purchase. A stronger balance sheet backs the OEM's ability to hold up parts supply, warranty support, and service capacity over the life of the aircraft, which is exactly what residual values and prebuy confidence lean on for in-production Challengers and Globals. Lenders read credit upgrades too: an improving issuer typically means easier terms and more appetite for financing, which matters most to first-time turbine buyers stretching for their first jet. And Bombardier's expanding Services footprint, now backing a fleet of more than 5,200 aircraft across 10 facilities in six countries, is itself a maintenance-availability signal worth factoring into any ownership decision on the brand.Browse current Bombardier listings on GlobalAir.com