Embraer has achieved investment grade status from Moody’s, marking the third major rating agency to upgrade the Brazilian aircraft manufacturer this year.
The company’s credit rating was raised from Ba1 to Baa3 with a positive outlook.
The upgrade follows similar moves by S&P Global Ratings in February and Fitch Ratings in September.
“Our focus on efficiency and financial discipline are important differentiators, alongside our modern and competitive portfolio,” said Embraer CFO Antonio Carlos Garcia.
Moody’s cited improving credit metrics, financial policy and liquidity as key factors in its decision.
The company’s backlog reached its highest level in nine years at US$22.7 billion in the third quarter.
Embraer, Brazil’s largest high-technology exporter, expects 2024 revenue between US$6.0 billion and US$6.4 billion.
The manufacturer forecasts an adjusted EBIT margin of 9.0 to 10.0 per cent for the year.
The company maintains leading positions in commercial jets up to 150 seats, executive aviation, defense and security, and services and support.
Strong free cash flow generation has enabled Embraer to reduce its debt levels.
