Bombardier strongly disagrees with Moody’s rating action

Bombardier strongly disagrees with Moody’s rating action. It does not accurately reflect the value of our partnership with Airbus and is completely disconnected with the market reaction, which has been overwhelmingly positive.

• Aerospace analysts from Teal Group and Air Insight have increased their C Series delivery forecasts by 40-50%
• The partnership with Airbus will allow C Series aircraft deliveries to U.S. customers through the Alabama facility
• Bombardier’s market cap rose by over $1 billion in the week following the announcement of the partnership
• The value of Bombardier’s bonds in reaction to the news also increased by approximately $500 million
• Fitch stated that “Airbus's agreement to acquire a slightly more than 50% stake in Bombardier's (BBD) C Series aircraft program is a high-profile development, which could be beneficial for BBD's credit profile.”
• S&P stated: “We believe the partnership with Airbus could prove critical to the success of the C Series program…”

In short, the latest developments de-risk Bombardier’s program execution and improve its credit worthiness. Clearly, Moody’s is the outlier here…and its rating action is ill-founded.