A credit analyst is assessing the efficiency and leverage of two aerospace companies on the basis of certain sub-factors identified by Moody’s. The analyst collects the information from the companies’ annual reports and calculates the following ratios:

Based solely on the data given, which company is more likely to be assigned a higher credit rating, and why?

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EBITDA/Average assets Debt/EBITDA Retained cash flow to debt Free cash flow to net debt Bombardier Inc. 7.5% 3.9 6.1% -7.0% BAE Systems plc 10.1% 3.1 13.7% 7.7%