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.
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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.”
“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.