Fitch affirms Boeings’s long-term ratings at 'A'

PanARMENIAN.Net - Fitch Ratings has affirmed the 'A' long-term and 'F1' short-term Issuer Default Ratings (IDRs) for The Boeing Company (BA) and Boeing Capital Corporation (BCC). The Rating Outlook is Stable. The ratings cover approximately $10.5 billion of debt ($7.9 billion at BA and $2.6 billion at BCC), Business Wire said.

The Stable Outlook reflects BA's substantial liquidity, debt reduction, financial flexibility, and non-787 commercial backlog, all of which offset the substantial risks in the 787 program, which is Fitch's main concern.

The grounding of the 787 fleet will hurt BA's profitability and cash flow, but the company has the financial strength to withstand negative developments in the program. The timing of the resolution of the 787 fleet grounding is Fitch's key watch item, and a disruption to the program beyond several months could lead to a Negative Outlook