Bulletin: Boeing Co. Ratings Unaffected By Expected Decline In 2016 Aircraft Deliveries

WASHINGTON D.C. (Standard&Poor's) Jan. 27, 2016--Standard&Poor's Ratings Services said today that its ratings and outlook on Boeing Co. (A/Stable/A-1) are unaffected by the company's announcement earlier today that it expects to deliver only 740-745 jetliners in 2016. This is a decline from the record 762 jetliners that the company delivered to its customers in 2015 and is well below our expectations of an increase to more than 775 in 2016. This shortfall is due to a number of factors, including the company's transition to the new 737 MAX jetliner--which will not begin deliveries until 2017--the declining production of the 747-8, and the lack of growth in the number of 787 deliveries due to customer timing. Although

...WASHINGTON D.C. (Standard & Poor's) Jan. 27, 2016--Standard & Poor's Ratings Services said today that its ratings and outlook on Boeing Co. (A/Stable/A-1) are unaffected by the company's announcement earlier today that it expects to deliver only 740-745 jetliners in 2016. This is a decline from the record 762 jetliners that the company delivered to its customers in 2015 and is well below our expectations of an increase to more than 775 in 2016. This shortfall is due to a number of factors, including the company's transition to the new 737 MAX jetliner--which will not begin deliveries until 2017--the declining production of the 747-8, and the lack of growth in the number of 787 deliveries due to customer timing. Although this shortfall will cause the company's revenues and earnings to decline in 2016, the company expects that its cash flow will improve from 2015 levels, which should help keep Boeing's credit ratios in-line with our expectations, including a funds from operations-to-debt...

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