A BBB- rating is usually considered the bottom of the investment grade bond ratings. BB is clearly a junk rating. It indicates that the rating agency could not find assets to cover redeeming the preferred. Hence, Bombardier must earn enough to repay you, or preferred owners will not get their money back.

Sometimes when the business is doing well and perhaps a rating upgrade may be in the offing pricing can be closer to par, but for now it's a high risk investment.