Bulletin: Boeing-Embraer Planned Joint Venture Has No Credit Implications For Boeing Ratings

WASHINGTON D.C. (S&P Global Ratings) July 5, 2018--U.S.-based Boeing Co. and Brazil-based Embraer S.A. today announced they had reached a memorandum of understanding to create a joint venture (JV) to operate Embraer's commercial aircraft and services businesses. The JV would be 80% owned by Boeing (for an investment of $3.8 billion) and 20% by Embraer. The JV would extend Boeing's commercial aircraft product line into large regional jets, where Embraer has recently outsold competitor Bombardier Inc., and bolster Boeing's engineering and product development resources. The JV would not include Embraer's business jet or defense operations. The transaction, if completed as currently contemplated, would not likely have implications for our ratings or outlook on Boeing, absent significant other changes in the

...WASHINGTON D.C. (S&P Global Ratings) July 5, 2018--U.S.-based Boeing Co. and Brazil-based Embraer S.A. today announced they had reached a memorandum of understanding to create a joint venture (JV) to operate Embraer's commercial aircraft and services businesses. The JV would be 80% owned by Boeing (for an investment of $3.8 billion) and 20% by Embraer. The JV would extend Boeing's commercial aircraft product line into large regional jets, where Embraer has recently outsold competitor Bombardier Inc., and bolster Boeing's engineering and product development resources. The JV would not include Embraer's business jet or defense operations. The transaction, if completed as currently contemplated, would not likely have implications for our ratings or outlook on Boeing, absent significant other changes in the company's operating performance and financial profile. We see the transaction as strengthening Boeing's competitive position, though not sufficiently to change our overall assessment of...

Bulletin