(Finance) – Fitch Ratings confirmed the Long-Term Issuer Default Rating (IDR) “BBB-” Of Boeingwhile theoutlook was revised from positive to stable.
The outlook revision reflects Fitch’s view that Boeing’s path to achievement of its positive factors (including leverage less than 3.0x, FCF in the single-digit billions, and debt repayment greater than $15 billion) will be probably delayed by about 12 months compared to Fitch’s previous expectations, to 2026 from 2025.
“This delay would be primarily due to unexpected operational disruptions and the possibility of additional corporate actions that are expected to improve long-term operations,” it said in a statement.
Fitch predicts between 420 and 450 737MAX deliveries in 2024, about 100 less than previous forecasts. The estimate is that the production rate will remain limited below 38 per month for most of 2024 and that the company will liquidate about half of its inventory by the end of the year.