Boeing's credit-rating outlook downgraded by S&P Global
S&P Global Ratings on Tuesday lowered its outlook on Boeing Co. (BA) debt to negative, from stable, citing possible further delays with the 737 Max's return to service after reports the airplane maker may have misled aviation authorities. S&P Global kept its credit rating on Boeing at A, among the lowest rungs of investment-grade ratings. "The negative outlook reflects that potential lasting damage from the 737 MAX grounding could weaken its competitive position and make it difficult to maintain funds from operations (FFO) to debt above 40% after deliveries resume, absent a more conservative financial policy," S&P Global said. Boeing shares recouped some of their recent losses to gain nearly 3% on Tuesday, a day after being hit by downgrades from two investment banks (http://www.marketwatch.com/story/boeings-downward-spiral-sinks-stock-2019-10-21). Boeing is scheduled to report third-quarter earnings before the bell on Wednesday. (http://www.marketwatch.com/story/boeing-faces-a-40-drop-in-quarterly-profit-2019-10-18)
-Claudia Assis; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
October 22, 2019 12:35 ET (16:35 GMT)
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