Moody's Anticipates That Boeing Will Issue New Debt To Fund Free Cash Flow Shortfalls; Says Expects Ongoing Weak Performance In Commercial Airplanes Will Constrain Boeing's Free Cash Flow Generation For 2024 And 2025; Outlook Captures Material Degree Of Execution Risk In Boeing's Plan To Restore Compliance & Higher Quality To Commercial Aircraft Assembly Ops
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Moody's predicts Boeing will issue new debt to cover free cash flow shortfalls, citing weak performance in commercial airplanes as a constraint on cash flow for 2024 and 2025. The outlook includes significant execution risk in Boeing's plan to improve commercial aircraft assembly operations.
April 24, 2024 | 6:03 pm
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Moody's expects Boeing to issue new debt due to free cash flow shortfalls, with ongoing weak performance in commercial airplanes impacting cash flow for 2024 and 2025.
The anticipation of new debt issuance by Boeing due to free cash flow shortfalls, as reported by Moody's, suggests a negative outlook for the company's financial health, particularly in its commercial airplanes segment. This situation is likely to lead to investor concerns about the company's ability to generate sufficient cash flow in the near term, potentially impacting its stock price negatively. The mention of significant execution risk in improving commercial aircraft assembly operations adds to the uncertainty surrounding Boeing's future performance.
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