Boeing's Actions Support Liquidity Amidst Continued Operational Challenges (fitchratings.com)

The Boeing Company ('BBB-'/Negative Outlook) announcements today increase financial flexibility and moderate near-term liquidity concerns amidst an extended strike and continued operational challenges, says Fitch Ratings. Fitch continues to evaluate the company's ability to adhere to our negative rating sensitivity of decreasing gross debt below $50 billion and EBITDA leverage below 4x by year-end 2026.
Management's willingness and ability to access non-debt capital sources over the coming months will help alleviate downgrade risks by supporting repayment of 2025-26 maturities and increasing financial flexibility. The $25 billion S-3 shelf registration filing today accommodates broader market access, including the issuance of equity. The establishment of the up to $10 billion 364-day facility provides a short-term liquidity buffer and we expect any draws to be temporary. Boeing reported cash and equivalents of approximately $10.5 billion as of Sept. 30, 2024.
An enhanced liquidity position helps offset operational execution risks as management navigates the labor strike and works toward re-establishing post-strike momentum, receiving certification approvals, normalizing operations, and integrating Spirit AeroSystems into 2026. Fitch believes management's announcement to winddown the 767 program helps heighten operational focus. The announced organizational actions should improve operational efficiency and provide considerable cost savings.