Moody's On Boeing Says Yesterday's Rejection By The IAM Has Little Bearing On Our Review Of The Baa3 Rating, Which Remains Ongoing At This Time; Believe That An Agreement Will Be Reached With Financial Terms That Boeing Can Bear; However, The IAM Members' Demand For A Pension Is And Will Remain A Non-Starter; Resolution Of The Strike Is A Gating Item For Our Review, More So Because Of The Restart Of Production Rather Than The Financial Terms Of The New Contract
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Moody's states that the recent rejection by the IAM has little impact on Boeing's Baa3 rating review. They believe an agreement will be reached with terms Boeing can handle, but IAM's pension demand is unlikely to be met. The strike resolution is crucial for production restart, not financial terms.
October 24, 2024 | 3:21 pm
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Moody's indicates that the IAM's rejection has minimal impact on Boeing's Baa3 rating review. An agreement is expected, but IAM's pension demand is unlikely to be met. The strike's resolution is crucial for production restart.
Moody's assessment suggests that the IAM's rejection does not significantly affect Boeing's credit rating review. The expectation of reaching an agreement indicates stability, but the pension demand remains a challenge. The strike's resolution is more critical for production than financial terms, suggesting a neutral short-term impact on stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 90