The ratings on Chicago, Ill.-based Boeing Co. are supported by its very strong position in defense and military space sectors, which have moderately attractive growth prospects; its position as one of two global producers of large commercial aircraft, with generally favorable long-term fundamentals; efficient operations; and expected good overall financial performance, especially solid cash flow generation and liquidity. Concerns include the currently weak demand for commercial airplanes, sizable unfunded postretirement liabilities, and the need to improve execution and reputation with the U.S. government on some important defense programs. The Sept. 11, 2001, attacks, a sluggish global economy in the past two years, the Iraq war, and SARS have had a severe impact on commercial aviation, leading to a decline in
