Fitch cuts Boeing’s credit rating on doubts over return of 737 MAX
Fitch Ratings on Friday downgraded Boeing Co’s long-term credit ratings to ‘A-‘ from ‘A’, citing regulatory risk regarding the timing of the 737 MAX’s return to service.
The global ratings agency said the MAX situation has reduced much of the planemaker’s financial cushion, leaving it more exposed to unforeseen events. The ‘A’ category represents high credit quality with expectations of low default risk.
Fitch expects Boeing’s debt to rise in the first and second quarters of 2020 and potentially peak at more than $32 billion to $34 billion. It expects the debt to nearly double to around $27 billion in 2019.
