Boeing’s credit score lowered due to 737 Max uncertainty

FAN Editor

Boeing’s credit rating was lowered by S&P Global on Thursday amid confusion over when regulators will allow its 737 Max to resume commercial flights.

Continue Reading Below

The Max was the top-selling aircraft in Boeing’s history before it was grounded after two fatal crashes in five months. The ratings agency cut its long-term credit score on the planemaker to “A-” from “A” and its short-term rating to “A-2” from “A-1.”

Ticker Security Last Change Change %
BA BOEING COMPANY 333.96 +3.28 +0.99%

“The downgrade reflects the uncertainty over when the 737 MAX will return to service, the risk to the supply chain from the planned production halt, and possible long-term impact to Boeing’s competitive position,” S&P credit analysts wrote.

The downgrade was the second by a ratings agency in less than 24 hours – Moody’s lowered its rating on Wednesday evening.

On Wednesday, Fitch reaffirmed its outlook for Boeing, but said the 737 Max’s sidelining “presents significant public relations and regulatory challenges, and the impact on Boeing’s reputation and brand will be a watch item for the next several years.”

This story is developing. Check back for updates.

Free America Network Articles

Leave a Reply

Next Post

Treasury Secretary Mnuchin is 'confident' trade deal will be signed at beginning of January

Treasury Secretary Steven Mnuchin said Thursday he has no doubt that U.S. and Chinese trade negotiators will sign their “phase one” trade deal in early January. Asked by CNBC’s David Faber how certain he is the trade deal will be signed on schedule, the secretary said he was “very confident.” […]