Embraer S.A. -- Moody's: Embraer's planned debt exchange offer will not affect its Baa3 rating or stable outlook

New York, August 29, 2013 -- Moody's Investors Service said that the 28 August 2013 announcement by Embraer S.A. (Embraer or the company) of its offer to exchange up to $880.1 million combined face amount of guaranteed 6.375% senior unsecured notes due 2017 and 2020 of subsidiary Embraer Overseas Limited for new notes due 2023 would not affect the company's existing ratings. Upon successful completion of the proposed transaction, at an anticipated lower cost of debt capital based on current market rates and with an extended maturity profile as indicated, Moody's did acknowledge that the transaction would represent a modest credit positive development, nonetheless. Moody's expects that it will assign a Baa3 rating to the new exchange notes upon their issuance, a level equivalent to that for both the existing rated senior unsecured notes of Embraer S.A. as well as the guaranteed Embraer Overseas Limited notes under solicitation for exchange. For additional information, research subscribers are directed to the associated Issuer Comment on Moody's website at www.moodys.com.

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