Moody's rates Embraer notes Baa3

Moody's Investors Service said it assigned a Baa3 rating to Embraer SA's proposed $500 million issuance of senior unsecured notes due 2022.

The outlook is stable.

The company intends to use the net proceeds from the offering for general corporate purposes, including the funding of working capital for production ramp-up on certain programs.

Moody's said Embraer's position as the leading regional jet maker and its reputation as a reliable producer of airplanes contributes to the Baa3 rating.

Demonstrated control over operating costs, as well as inventory management have enabled Embraer to sustain solid operating cash flow and an overall financial profile consistent with the Baa3 rating, the agency said.

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