Moody's Places Boeing's Ratings on Review for Downgrade to Junk Amid Strike Concerns

Sep 13, 2024, 04:34 PM

Moody's has placed Boeing's ratings on review for a potential downgrade to junk status. The review is driven by concerns that a prolonged strike by workers could disrupt the recovery of Boeing's commercial airplanes business. Fitch also warned that an extended strike could have significant operational and financial impacts, potentially forcing Boeing to seek new liquidity sources to meet cash targets. Despite an increase in 737 MAX production to nearly 30 per month in July and August, the ongoing labor issues pose a significant risk to Boeing's financial stability and credit rating. Additionally, Moody's highlighted that Boeing's need to issue debt alongside any equity raised to meet its liquidity requirements could also lead to a downgrade from its current investment-grade status.