Moody's announces Boeing is under review for a potential ratings downgrade

September 16th 2024

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Moody's Ratings is considering Boeing’s credit rating in response to industrial action taken by mechanics and assemblers represented by the International Association of Machinists District 751. Read More » Late last week, approximately 95% of the union's members rejected Boeing's latest pay offer and withdrew their labour. As a consequence, aircraft production at Boeing's Seattle area facilities ceased. “In our review, we will assess the strike's duration, the impact on cash flow and the potential equity capital raising Boeing may undertake to bolster its liquidity,” Moody's said in a September 13 note. “A prolonged strike will fracture the recovery of the commercial airplanes business, which remains in its early stages.”