SEATTLE - S&P Global has downgraded The Boeing Co’s credit rating from BBB/A-2 to BBB-/A-3 as the US aerospace giant’s earnings and cash flow are expected to take a dip due to the coronavirus (COVID-19) pandemic.
According to S&P, Boeing’s cash flow is expected to decline significantly with lower aircraft deliveries and aftermarket sales in the aftermath of travel restrictions imposed to curb the spread of coronavirus.
The credit rating agency also said that the decline will only be offset by Boeing’s effort to cut costs and adjust to lower demand.
As reported by Reuters, on Wednesday (29/4) Boeing reported a second consecutive quarterly loss and said it would slash its workforce by around 10%, further reduce Boeing 787 Dreamliner production, and increase liquidity. (MS)