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Bombardier's debt rating downgraded

Although Moody’s Investors Service recently downgraded Bombardier Corp.’s debt rating., the drop will have a negligible effect on operations, Bombardier officials claim.

"We still believe we have the right plan in place to achieve our objectives, and with $4.9 billion of liquidity at the end of October, we have the resources to address the situation," said Bombardier President and Chief Executive Officer Paul Tellier in a prepared statement.

Bombardier continues to improve its profitability and cash generation, and has taken measures to manage risks, officials said.

"We have a good liquidity and the restructuring program is on track," said Tellier. "We are focused on our plan and we will attain our objectives, which now include a return to investment grade."

During the second quarter, Bombardier Transportation returned to profitability. The group — which is expected to remain profitable — has implemented initiatives aimed at rationalizing the division, and improving production and procurement processes.

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More News from 11/12/2004