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Boeing at Risk of Junk Rating With S&P Amid Strike
- Credit grader estimates 2024 cash outflow of about $10 billion
- The strike is costing Boeing more than $1 billion a month
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S&P Global Ratings is looking at downgrading Boeing Co.’s credit grades to junk, citing the planemaker’s growing cash needs as it suffers from a strike by machinists that looks increasingly likely to wear on.
The credit grader estimated that Boeing will burn through about $10 billion of cash in 2024. The company is likely to require additional funding to meet its day-to-day cash needs and finance debt maturities, according to a statement from the ratings firm on Tuesday. Boeing is considering raising at least $10 billion by selling shares, Bloomberg reported earlier this month, as it tries to maintain investment-grade credit ratings.