Boeing Co.'s Proposed Senior Unsecured Notes Due 2021, 2027, 2030, 2035, 2050, And 2059 Rated 'A'

WASHINGTON D.C. (S&P Global Ratings) July 29, 2019--S&P Global Ratings today assigned its 'A' issue-level rating to Chicago-based aircraft manufacturer and defense contractor Boeing Co.'s proposed senior unsecured notes. The company plans to issue the notes in six tranches due 2021, 2027, 2030, 2035, 2050, and 2059. Boeing plans to issue up to $5.5 billion in notes. We expect that the company will use the proceeds from the proposed notes for the approximate $4 billion investment in the previously announced joint venture to operate Embraer S.A.'s commercial aircraft and services businesses, and for general corporate purposes. Any remaining funds would bolster cash reserves as the company continues to deal with the 737 MAX grounding. We do not believe the transaction

...July 29, 2019 WASHINGTON D.C. (S&P Global Ratings) July 29, 2019--S&P Global Ratings today assigned its 'A' issue-level rating to Chicago-based aircraft manufacturer and defense contractor Boeing Co.'s proposed senior unsecured notes. The company plans to issue the notes in six tranches due 2021, 2027, 2030, 2035, 2050, and 2059. Boeing plans to issue up to $5.5 billion in notes. We expect that the company will use the proceeds from the proposed notes for the approximate $4 billion investment in the previously announced joint venture to operate Embraer S.A.'s commercial aircraft and services businesses, and for general corporate purposes. Any remaining funds would bolster cash reserves as the company continues to deal with the 737 MAX grounding. We do not believe the transaction will significantly alter Boeing's credit metrics; therefore, all of our other ratings on the company are unchanged. Boeing took a $5.6 billion pre-tax charge in its second quarter 2019 results to compensate airlines...

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