DBRS assigns BB to Bombardier debentures

DBRS said it assigned its BB instrument rating with a stable trend to the $2 billion senior unsecured debentures to be issued by Bombardier Inc. The notes, with a recovery rating of RR4, are rated at the same level as Bombardier's issuer rating.

DBRS said it recognizes that the completion of the proposed debt issue will strengthen Bombardier's liquidity and financial flexibility as the high capital spending related to its aircraft development programs continue. However, the additional debt will also weaken Bombardier's financial risk profile, with increased leverage and limited additional cash flows and earnings at least until the company completes the CSeries development program and commences delivery.

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