The global economic downturn has resulted in weaker air traffic and losses at airlines, reducing demand for Boeing Co.'s jetliners and causing the cancellation and deferral of existing orders. The company's development of the new 787 is two years behind schedule, and is likely to experience further delays. Boeing Co.'s defense business remains stable, but changes in defense-spending priorities could constrain the long-term growth and competitiveness of the unit. We are lowering our long-term ratings on Boeing Co. and Boeing Capital Corp. to 'A' from 'A+' and removing the ratings from CreditWatch. We are also affirming the short-term 'A-1' rating. The stable outlook reflects our expectations of modestly improving credit protection measures in 2009, as the company recovers from the
