S&P Places Boeing’s Rating on CreditWatch Negative as Strike Drags On. …


Standard & Poor’s (S&P) has placed Boeing’s credit rating on CreditWatch with negative implications due to the ongoing strike by the Society of Professional Engineering Employees in Aerospace (SPEEA) and the International Association of Machinists and Aerospace Workers (IAM). The strike, which began in August, has resulted in significant disruptions to Boeing’s production and delivery schedules.

The CreditWatch placement indicates that S&P may lower Boeing’s credit rating if the strike continues or if the company’s financial performance deteriorates. Boeing’s current credit rating is ‘A-‘, and a downgrade could increase the company’s borrowing costs and make it more expensive to finance its operations.

The strike has already resulted in delays to several key Boeing programs, including the 787 Dreamliner and the 737 MAX. The company has also faced cancellations and deferrals of orders due to the production disruptions. S&P estimates that the strike is costing Boeing around $100 million per day.

S&P will continue to monitor the situation and may revise Boeing’s credit rating once the strike is resolved or if there are significant developments in the negotiations between the company and the unions. A resolution to the strike would likely result in the removal of the CreditWatch placement, while a prolonged strike or significant financial damage could lead to a downgrade.


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