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Embraer is full Investment Grade by the 3rd main rating agency

Published

December 10, 2024

After S&P and Fitch, Moody’s upgrades the company’s rating based on continued improvement in credit metrics, financial policy and liquidity

São Paulo (SP), Brazil, December 10, 2024 – Embraer (NYSE: ERJ; B3: EMBR3) has received an additional Investment Grade rating, this time from Moody’s. The agency raised the company’s credit rating from Ba1 to Baa3, with a positive outlook. This is the third agency to grant Embraer the classification this year, following S&P Global Ratings in February and Fitch Ratings in September.

In its report, Moody’s highlights the continued improvement in credit metrics, financial policy and liquidity as reasons for the company’s achievement of Investment Grade status. These factors are related to the gradual recovery in deliveries, an increased backlog and operational performance. Additionally, the reduction in debt, driven by the strong generation of free cash flow, strengthened the company’s position.

“Our focus on efficiency and financial discipline are important differentiators, alongside our modern and competitive portfolio. These attributes ensure the success of our strategy and sustainable business growth, in addition to the strong engagement of our employees,” says Embraer CFO, Antonio Carlos Garcia.

A leader in the manufacture of commercial jets with up to 150 seats and the largest exporter of high technology in Brazil, the company is well positioned in all its segments – Commercial Aviation, Executive Aviation, Defense & Security and Services & Support. With a backlog at its highest level in nine years, totaling US$ 22.7 billion in the third quarter, the company is projected to end 2024 with revenue between US$ 6.0 billion and US$ 6.4 billion and an adjusted EBIT margin between 9.0% and 10.0%.

Images: Embraer DAM (bynder.com)

About Embraer

A global aerospace company headquartered in Brazil, Embraer has businesses in Commercial and Executive aviation, Defense and Security, and Agricultural Aviation. The company designs, develops, manufactures, and markets aircraft and systems, providing Services and Support to customers after-sales.

Since it was founded in 1969, Embraer has delivered more than 9,000 aircraft. On average, about every 10 seconds an aircraft manufactured by Embraer takes off somewhere in the world, transporting over 150 million passengers a year.

Embraer is the leading manufacturer of commercial jets with up to 150 seats and the main exporter of high- value-added goods in Brazil. The company maintains industrial units, offices, service, and parts distribution centers, among other activities, across the Americas, Africa, Asia, and Europe.