...WASHINGTON D.C. (S&P Global Ratings) Sept. 28, 2018--S&P Global Ratings said today that Boeing Co. (A/Stable/A-1) has gained an important victory for its defense business by winning the $9.2 billion contract to provide at least 350 T-X trainer aircraft (as well as simulators and other equipment) to the U.S. Air Force. We believe that this program is likely to be one of the last large military aircraft contracts for a while. It is a fixed price contract, however, and any delays or cost overruns will be borne by the company. We believe that it will be a challenge for Boeing to make the contract profitable, but we currently see no effect on our ratings on the company. We believe Boeing bid aggressively to win the T-X contract. Boeing similarly bid aggressively to win the KC-46A aerial refueling tanker program, which has experienced significant delays and has had more than $3 billion in cost overruns. Foreign sales could bolster the programs profitability over time, but Boeing will need to...
