Fitch revises Boeing outlook to negative

Fitch Ratings said it revised Boeing Co.'s outlook to negative from stable.

“This action follows Boeing's comments around restoring its cash balance to $10 billion and staying ahead of maturities and liquidity needs over the next 12 months. The outlook incorporates Fitch's expectation that Boeing could issue new debt to de-risk early-2025 cash flow risks and bolster financial flexibility as the company works through operational milestones,” the agency said in a statement.

Fitch added, “The negative outlook reflects Boeing's heightened execution risks over the next 12 to 24 months as it eliminates legacy inventory, stabilizes and increases aircraft production rates, navigates seasonal cash flow volatility, pursues additional corporate actions that should enhance longer-term operations and fulfills its commitment to repay debt and return to IG metrics.”

Fitch also affirmed its BBB- ratings on Boeing and its long-term unsecured notes and revolvers.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.