Boeing Cut as S&P Joins Moody’s With Downgrade Amid Max Crisis
- Company to halt 737 production to save cash amid flying ban
- Uncertainty of return risks supply, ability to compete: S&P
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Boeing Co. has been downgraded by S&P Global Ratings and Moody’s Investors Service as the grounding of the 737 Max plane extends into next year, jeopardizing the company’s financial future.
S&P followed Moody’s lead Thursday morning with a one-notch cut to A-, four levels above speculative grade amid uncertainty around when the company’s best-selling aircraft will return to service, analyst Christopher Denicolo said in a report. The production halt brings risks to the company’s supply chain and potential long-term impact to Boeing’s competitive edge, Denicolo said.