S&P: Bombardier on positive watch

Standard & Poor's said it placed its ratings, including the BB long-term corporate credit rating, on Bombardier Inc. on CreditWatch with positive implications, following the company's Nov. 28 announcement to repurchase $1.1 billion of unsecured bonds.

The agency said that the imminent debt reduction, together with stronger cash flow from all business segments and a substantial order backlog should enhance Bombardier's financial risk profile and credit measures.

S&P noted that continuing to reduce the aircraft financing portfolio, excess-over-average production costs and unfunded postretirement obligations has also helped the company improve its balance-sheet stability.

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