April 29 (Reuters) - Boeing ( BA ) on Monday tapped debt

markets to raise $10 billion, after the U.S. planemaker burned

$3.93 billion in free cash during the first quarter following

slowing production of its best-selling jet, sources familiar

with the matter said.

Boeing's ( BA ) credit rating hovered above "junk" status last week

from rating agencies as the planemaker tries to recover from a

crisis that began in January after a midair blowout of a cabin

panel door plug on a nearly new 737 MAX 9.

Investors and analysts have said Boeing ( BA ) could tap bond

markets to get ahead of more than $12 billion in combined debt

coming due in 2025 and 2026.

Credit rating agencies on Monday both assigned ratings

nearing junk to Boeing's ( BA ) new senior unsecured notes, with S&P

assigning a BBB- rating and Moody's assigning a Baa3 rating.

Moody's said the rating reflects Boeing's ( BA ) still-strong

business profile, which continues to mitigate ongoing weak

performance in commercial aircraft, although headwinds

surrounding the division could persist through 2026.

Boeing ( BA ) will use the bond proceeds to increase its liquidity

ahead of maturities on its existing debt load, including $4.3

billion in 2025, S&P wrote on Monday.

"It looks like it will go well," said one of the sources,

who was looking at buying the bonds, adding that he was told it

was eight times oversubscribed.

The deal's bookrunners leading the bond sale include Bank

of America, Citi, JPMorgan and Wells Fargo, according to the

deal's term sheet.

Boeing ( BA ) declined to comment, but pointed to remarks from

Chief Financial Officer Brian West during the company's earnings

last week in which he said Boeing ( BA ) was committed to managing its

balance sheet in a prudent manner, with the goal of prioritizing

its investment-grade rating and helping the factory and supply

chain to stabilize.