S&P Says Boeing Is In Discussions To Acquire Spirit AerosyStems, Which, If Completed, Would Increase Its Debt Levels; Revised Outlook To Negative To Reflect Increased Potential For Boeing To Face Further Delays In Expected Recovery Of Its Cash Flow, Credit Ratios; Believe Risk Associated With Boeing's Ability To Restore Credit Measures To Levels Consistent With Our Rating Over Next Few Years Has Increased
Portfolio Pulse from Benzinga Newsdesk
S&P has revised Boeing's outlook to negative, citing discussions to acquire Spirit AeroSystems which could increase its debt levels. The revision reflects concerns over potential delays in Boeing's cash flow recovery and credit ratios, indicating an increased risk to restoring credit measures consistent with S&P's rating in the coming years.
April 25, 2024 | 2:25 pm
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NEGATIVE IMPACT
Boeing's outlook has been revised to negative by S&P due to its potential acquisition of Spirit AeroSystems, which could increase its debt levels and delay cash flow recovery.
The negative outlook revision by S&P for Boeing is directly tied to its discussions to acquire Spirit AeroSystems, which is expected to increase Boeing's debt levels. This acquisition could lead to further delays in the expected recovery of Boeing's cash flow and credit ratios, impacting its ability to restore credit measures to levels consistent with S&P's rating. The increased risk associated with Boeing's financial health and the potential impact on its stock price is significant, hence the negative score.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90
NEUTRAL IMPACT
Spirit AeroSystems is in discussions to be acquired by Boeing, a move that has led to a negative outlook revision for Boeing by S&P due to concerns over increased debt and delayed cash flow recovery.
While the news primarily impacts Boeing due to the negative outlook revision by S&P, Spirit AeroSystems is the target of the acquisition. This situation could potentially bring about changes in its operational and financial structure. However, without specific details on the terms of the acquisition or its completion, the direct impact on Spirit AeroSystems' stock price remains uncertain, leading to a neutral score.
CONFIDENCE 70
IMPORTANCE 75
RELEVANCE 70