Boeing At Risk Of Moody’s Downgrade On Cash Flow Concerns
Boeing Co., the jet maker that on Monday unveiled a sweeping leadership overhaul, may have its credit rating downgraded by Moody’s Ratings because of the financial impact from the company’s safety crisis.
(Bloomberg) -- Boeing Co., the jet maker that on Monday unveiled a sweeping leadership overhaul, may have its credit rating downgraded by Moody’s Ratings because of the financial impact from the company’s safety crisis.
The ratings provider placed Boeing’s Baa2 senior unsecured rating on review for downgrade from stable, according to a statement on Tuesday, citing the potential for Boeing to fail to deliver 737 aircraft at the volumes needed to materially expand free cash flow and “retire debt in a reasonable timeframe.”
Boeing’s Chief Executive Officer Dave Calhoun is stepping down at the end of the year, the firm said in a statement Monday. Stan Deal, the embattled chief of Boeing’s commercial airplane division, is departing immediately and will be replaced by Chief Operating Officer Stephanie Pope.
Read more: Boeing CEO to Step Down in Overhaul Sparked by Safety Crisis
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