02:39 PM EDT, 04/24/2024 (MT Newswires) -- Boeing's ( BA ) senior credit rating was cut by Moody's on Wednesday to Baa3, the final notch before the aircraft manufacturer would slide below investment grade.

The move arrives less than a month after the ratings agency warned March 26 Boeing ( BA ) was at risk of a downgrade, citing potential disruptions to its production schedule and revenue following a string of safety problems, including a Jan. 5 incident when a door plug blew out from a 737-9 Max jet flown by Alaska Airlines (ALK).

In a new research note on Wednesday, the Moody's analysts said Boeing's ( BA ) annual free cash flow will likely fall short of levels needed to repay over $12 billion in debt coming due in 2025 and 2026, requiring the company to take on new debt.

How soon Boeing's ( BA ) commercial airplanes unit can fully resume normal operations "will dictate how much of any new debt will be used for funding the upcoming debt maturities versus being available for operations should free cash flow generation remain tempered," Moody's said.

Boeing ( BA ) shares were nearly 3% lower in recent trading.

Price: 164.68, Change: -4.50, Percent Change: -2.66