Ratings agencies warn of downgrade if Boeing strike prolonged
Al Jazeera
Boeing’s management will likely need to access new sources of liquidity in the event of a prolonged strike.
Fitch Ratings and Moody’s have joined S&P Global Ratings in warning that a prolonged strike at Boeing’s factories on the United States West Coast may lead to a ratings downgrade, a headache for the plane maker, which is saddled with massive debt.
“If the current strike lasts a week or two, it is unlikely to pressure the rating. However, an extended strike could have a meaningful operational and financial impact, increasing the risk of a downgrade,” Fitch said on Friday.
Moody’s warned of a downgrade if Boeing issues debt alongside any equity raised to meet its liquidity requirements, including the money it needs to retire about $12bn of debt maturities from now to the end of 2026.
Moody’s currently rates the aircraft maker at “Baa3” while Fitch has a “BBB-” rating — both a notch above junk status.
More than 30,000 workers walked off their jobs at Boeing on Friday after rejecting a proposed contract, halting production of its 737 MAX jet, the company’s main cash cow.
As the war enters its 953rd day, these are the main developments.
In the US, presidential elections are decided by a state-based vote allocation system. Here’s what you need to know.
Brazil, home to more than 21 million users, suspended X after it failed to comply with court orders and pay fines.
Blasts heard in capital’s southern suburbs shortly after Israel issued yet another evacuation order warning of strikes.
White House has for months said Israel is not the main stumbling block in elusive ceasefire talks.
A Reuters investigation found that the Biden administration was warned on three occasions about possible Israeli crimes in Gaza.
The UN Human Rights Office said at least 3,000 people were forced to flee after gang members attacked early on Thursday.
Attacks hit key port city of Hodeidah as well as the capital, Sanaa, Houthi-run media and US sources say.
Morocco slams ECJ ruling that said the people of Western Sahara were not consulted before the 2019 deals were signed.
The ‘real time PCR test’ will enable the detection of the virus by swabbing human skin lesions.