Moody's Upgrades Embraer Credit Rating to Baa2

Moody's upgraded the global credit rating of Embraer from Baa3 to Baa2 on 14 September 2026. The agency also shifted its outlook on the Brazilian planemaker from positive to stable.

Analysts Carolina Chimenti and Marcos Schmidt stated that the upgrade reflects steady improvements in credit metrics throughout 2026. Moody's highlighted conservative financial policies, strong liquidity, efficient execution of a robust order backlog, and repeated outperformance against operational targets.

Deleveraging was a key factor in the decision. Embraer reduced its leverage from 3.6 times at the close of 2025 to 2.4 times for the 12-month period ended in June. Moody's projects adjusted gross leverage will settle between 2.0 and 2.5 times in the coming years, with the company maintaining a net cash position.

Between 2021 and 2025, Embraer generated about $1.7 billion in free cash flow and paid down approximately $7.7 billion in debt. At the end of June, cash reserves and short-term investments totaled $2.3 billion, or $1.9 billion excluding Eve, backed by $1.0 billion in committed credit facilities available through August 2029.

The rating remains constrained by global aerospace sector challenges, including high capital intensity, seasonal working capital needs, rising competition, and smaller scale relative to global peers. Last week, Fitch Ratings raised Embraer to BBB from BBB-, while S&P Global Ratings has rated the company BBB since September 2025.