Fitch upgrades Embraer credit rating to BBB stable citing $2 billion cash position
Rating agency Fitch raised Embraer's debt rating to BBB with a stable outlook, highlighting the airline manufacturer's robust liquidity and positive free cash flow history.
Fitch Ratings elevated the risk classification for Embraer (EMBJ3) to BBB with a stable outlook. The upgrade primarily cites the company's strong liquidity position. In financial statements dated June 30, 2026, Embraer reported total debt of US$ 2.5 billion, including US$ 178 million in cross-border unsecured notes and US$ 312 million owed to Eve. Total cash on hand reached US$ 2 billion, excluding the $403 million held by Eve. Fitch stated this cash reserve is sufficient to cover debt amortizations until at least 2035. The firm also maintains a US$ 1 billion revolving credit facility maturing in 2029. Approximately 90% of Embraer's cash equivalents and financial investments were denominated in dollars on that date, with significant portions held abroad. Fitch emphasized the company's ability to generate positive free cash flow consistently, manage its liabilities actively, and access credit markets both in Brazil and internationally to meet obligations and navigate sector cycles.
