The ratings on Boeing Co. reflect its position as one of two global producers of large commercial aircraft and one of the largest U.S. defense contractors, as well as significant liquidity. The ratings also incorporate Standard&Poor's Ratings Services' expectations of improved profitability in 2010 and substantial cash generation starting in 2011. While the 787 and 747-8 airplanes are closer to initial deliveries, there are still risks related to testing and certification. Our concerns include the possibility of further production cuts due to weak airline demand for new jetliners, although a large backlog should be an important mitigant. The ratings also take into account risks from the long-term effects of changes in U.S. defense spending and substantial postretirement liabilities.
