S&P Global Ratings has raised Embraer’s rating from ‘BB+’ to ‘BBB-‘ and maintained a stable outlook, the Brazilian manufacturer has reported. Two other main rating agencies have similarly revised their forecasts in a positive fashion: Fitch Ratings revising Embraer’s BB+ with a positive outlook, and Moody’s raising the company’s rating to Ba1 and maintaining a stable outlook.
According to S&P, Embraer’s strong cash generation (allied with higher aircraft deliveries, cost reduction and efficiency measures) led to free cash flow in 2023 that was ‘considerably stronger than the company’s guidance to the market’. In a statement to clients, S&P highlighted Embraer’s continued focus on lean operations which, combined with its robust backlog, should support solid cash flows in coming years.
CFO of Embraer Antonio Carlos Garcia described the S&P upgrade as “an important recognition of the focus and discipline with which the company’s financial management has been carried out in recent years,” adding that Embraer is “on the right track to deliver more sustainable growth with higher financial profitability from now onwards”.
Embraer receives investment grade rating by S&P Global Ratings
