Research Update: Boeing Co. Outlook Revised To Negative On Delay Of Credit Metrics Restoration; 'BBB-/A-3' Ratings Affirmed

We believe the risk associated with Boeing Co.'s ability to restore credit measures to levels consistent with our rating over the next few years has increased. The company faces heightened production uncertainty, notably related to quality issues affecting its 737 MAX aircraft, and key changes to its leadership are pending. In addition, Boeing is in discussions to acquire Spirit AeroSystems Inc., which, if completed, would increase its debt levels. We revised the rating outlook to negative from stable and affirmed our 'BBB-' long- and 'A-3' short-term issuer credit ratings on the aerospace and defense company. We revised the outlook to negative primarily to reflect the increased potential for Boeing to face further delays in the expected recovery of its cash

...- We believe the risk associated with Boeing Co.'s ability to restore credit measures to levels consistent with our rating over the next few years has increased. - The company faces heightened production uncertainty, notably related to quality issues affecting its 737 MAX aircraft, and key changes to its leadership are pending. - In addition, Boeing is in discussions to acquire Spirit AeroSystems Inc., which, if completed, would increase its debt levels. - We revised the rating outlook to negative from stable and affirmed our '###-' long- and 'A-3' short-term issuer credit ratings on the aerospace and defense company. - We revised the outlook to negative primarily to reflect the increased potential for Boeing to face further delays in the expected recovery of its cash flow and credit ratios to levels we view as consistent with its rating, mainly related to its commercial aircraft production and deliveries....

Research Update