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Boeing Would Be Biggest-Ever US ‘Fallen Angel’ If Cut to Junk
- Downgrade would be ‘idiosyncratic credit situation’: JPMorgan
- Firm has ‘worn out its welcome’ in high-grade index: Bill Zox
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If cut to junk status, Boeing Co. will be the biggest US corporate borrower to ever be stripped of its investment-grade ratings and join junk bond indexes, flooding the high-yield market with a record volume of new debt to absorb.
On Tuesday, S&P Global Ratings said it’s considering downgrading the planemaker to junk as strikes at its manufacturing sites persist, hurting production. Last month, Moody’s Ratings said it’s considering a similar move. Fitch Ratings has highlighted the growing risks but not yet announced a review.