Fitch could up Bombardier

Fitch Ratings said it placed Bombardier Inc. and Bombardier Capital Inc. on Rating Watch positive.

Bombardier and Bombardier Capital have issuer default ratings at BB- and senior unsecured debt ratings at BB-. Bombardier also has a preferred stock rating at B.

The action reflects Bombardier's announcement that it intends to repurchase $1.1 billion of debt by Jan. 31.

Factors supporting the ratings include the company's diversification, leading market positions, the health of the business jet and turboprop markets, cash balances, debt maturity schedule and large backlog, Fitch said.

Rating concerns include elevated but improving debt levels compared with EBITDA, low operating margins, business jet market cyclicality, the pension plan deficit and exchange rate volatility, the agency said.

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