Fitch applies BBB- to Embraer, debt

Fitch Ratings said it assigned BBB- foreign and local currency long-term issuer default ratings, BBB- unsecured ratings and an AAA(bra) national scale rating to Embraer SA.

The agency also assigned BBB- unsecured ratings to debt issued by Embraer Netherlands Finance BV and Embraer Overseas Ltd.

The outlook is stable.

The actions affect about $3.5 billion of debt outstanding as of Dec. 31, 2015.

Fitch said the ratings reflect Embraer's competitive positions in the commercial and business jet markets; large backlog ($22.5 billion) covering several years of sales; consistent profitability; several promising defense programs; and the current favorable environment in the global commercial aviation industry.

The company’s solid liquidity profile, mostly held outside Brazil, and its large export revenues combined with some offshore operating cash flow further support the BBB- ratings.

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