On Oct. 8, 2004, Standard&Poor's Ratings Services revised its outlook on Boeing Co. and its finance unit, Boeing Capital Corp., to stable from positive. At the same time, Standard&Poor's affirmed its ratings, including the 'A/A-1' corporate credit ratings, on both entities. About $5.2 billion of debt is outstanding at Boeing and $7.5 billion at Boeing Capital. The outlook revision is based on two recent developments that make an upgrade unlikely in the intermediate term, despite a strong and improving financial profile. First, assertions by a former senior Air Force contracting official that she favored Boeing in awarding several major contracts raise the possibility of reevaluation of those contracts, new investigations, and litigation, thus setting back efforts
