Moody's turns Embraer outlook to stable

Moody's Investors Service said it changed the outlook to stable from negative and affirmed Embraer SA's Ba2 corporate family rating and senior unsecured debt rating, and the Ba2 ratings of the senior unsecured notes issued by Embraer Overseas Ltd. and Embraer Netherlands Finance BV and guaranteed by Embraer

“The change in Embraer's rating outlook to stable from negative reflects (i) the ongoing improvement in credit metrics related to a gradual recovery in market conditions, operating performance and backlog, and (ii) the improvement in the company's liquidity position following the recent asset sale in Portugal, the initiatives to reduce cash burn and the business combination and subsequent IPO of the eVTOL business EVE Holding, Inc. (EVE), all of which mitigates the risks that could trigger a negative rating action in the short term,” Moody’s said in a press release.

The agency said it forecasts Embraer's adjusted gross leverage will decline to 7x-6x by year-end 2022, and to 6x-5x in 2023, from around 9x in 2021 and 19.1x in 2020.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.