Slight improvement for Bombardier's credit rating
Montreal - The Canadian rating firm DBRS has now a better view of Bombardier's credit rating in the wake of the agreement that brought control of the C Series program to Airbus.
DBRS also believes that the partnership between Bombardier and Airbus will increase the visibility and profitability of the C Series aircraft.
The Toronto-based company has maintained the aircraft manufacturer's credit rating at B, but now has a stable, rather than a negative, outlook.
In a statement, DBRS explained that this new rating is due to a certain stabilization of the financial profile of the company. "It is possible to expect further modest improvements in the next 12 months, the rating company said.
The credit rating firm DBRS also believes that the partnership between Bombardier and Airbus will increase the visibility of the CS100 and CS300 aircraft, and thus increase the profitability of the program.
"DBRS anticipates that the company's risk profile will not change over the next 12 months, although further enhancements to Bombardier's transformation program could help," the company said. However, DBRS also indicates that higher than anticipated costs or delays in bringing the Global 7000 into service, which is currently in the testing phase, or a lower than expected profit margin could lead to a devaluation of the credit rating of the Canadian aircraft manufacturer.