Ratings agencies warn of downgrade if Boeing strike drags on

Fitch and Moody's on Friday joined S&P Global Ratings in warning that a prolonged strike at Boeing's factories in U.S. West Coast may lead to a ratings downgrade, a headache for the planemaker that is saddled with massive debt. "If the current strike lasts a week or two, it is unlikely to pressure the rating. However, an extended strike could have a meaningful operational and financial impact, increasing the risk of a downgrade," Fitch Ratings said. Moody's warned of a downgrade if Boeing issues debt alongside any equity raised to meet its liquidity requirements, including the money it needs to retire about $12 billion of debt maturities between now and the end of 2026. Moody's currently rates the planemaker at "Baa3", while Fitch has "BBB-" rating — both a notch above the junk status. More than 30,000 workers walked off the job at Boeing on Friday after rejecting a contract deal, halting production of its 737 MAX jet, the company's main cash-cow. CFO Brian West did not directly answer when asked if Boeing may need to raise debt or equity by the year-end or early 2025. "First of all, we want to prioritize the investment grade credit rating. And secondly, we want to allow the factory and the supply chain to stabilize. That last objective just got harder based on last night," he said at a conference organized by Morgan Stanley. "We are perfectly comfortable to supplement our liquidity position to support these two objectives," West said.<br/>