Fitch, Moody’s cut Boeing’s credit rating outlook to negative

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.