Fitch Assigns Boeing's New Notes 'BBB-'; Could Stabilize Outlook If Boeing Liquidates Over 100 Of Its Pre-2023 Built 737max & Half Of Its 787 Inventories By Early 2025; Could Stabilize Outlook If Boeing 737max Production Increases Toward 38 Per Month; Negative Outlook Reflects Boeing's Heightened Execution Risks Over Next 12-24 Months As It Eliminates Legacy Inventory
Portfolio Pulse from Benzinga Newsdesk
Fitch Ratings has assigned a 'BBB-' rating to Boeing's new notes, indicating a negative outlook due to heightened execution risks over the next 12-24 months as Boeing works to eliminate legacy inventory. The outlook could stabilize if Boeing liquidates over 100 of its pre-2023 built 737max and half of its 787 inventories by early 2025, and if the 737max production increases toward 38 per month.
April 29, 2024 | 3:50 pm
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Boeing's new notes rated 'BBB-' by Fitch, with a negative outlook due to execution risks and inventory challenges. Outlook may stabilize with significant inventory reduction and increased 737max production.
The negative outlook reflects the challenges Boeing faces in managing its inventory and increasing production rates. The potential for stabilization depends on Boeing's ability to liquidate a significant portion of its pre-2023 built 737max and 787 inventories and to increase the 737max production rate. These factors are critical for Boeing's financial health and could impact investor confidence and stock price in the short term.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100