Boeing Watchers Say Possible Equity Sale Could Avert Downgrade
- A “high-single-digit billions” raise would lift ratios: BI
- Agencies have warned of downgrades, citing worker strike
Raising equity would help Boeing maintain its ratings for now, but more fundamental issues in its business would need more work.
Photographer: Justin Tallis/AFP/Getty ImagesThis article is for subscribers only.
Should Boeing Co. decide to raise equity, it would help the company fend off a ratings downgrade for at least a couple of months, analysts and market participants said.
The possibility of the airplane maker launching a share sale soon has been floated by those who watch the company’s finances closely. Doing so would boost Boeing’s liquidity while it manages a cash drain that amounted to $8 billion in the first half as it worked through manufacturing issues now exacerbated by a worker strike.