Boeing’s credit rating is at risk as the grounding of the company’s 737 Max jetliner drags into fifth month, with Moody’s Investors Service joining Fitch Ratings in sounding a warning.
The planemaker faces a $5 billion cash-flow drain this year as it continues to churn out aircraft it can’t deliver until regulators around the globe clear the MAX to resume commercial flights, Moody’s said in a statement on Monday. Like Fitch, Moody’s affirmed Boeing’s rating at the sixth-highest level of investment quality while cutting the outlook to negative.
Financial risk relative to the company’s pre-grounding profile has meaningfully increased, and the resolution and ultimate impact for Boeing, both financially and reputationally, remain unknown, Moody’s said.
