03:41 PM EDT, 09/16/2024 (MT Newswires) -- Boeing's ( BA ) expected recovery, including its target of boosting production of Max aircraft to 38 units per month by the end of 2024, will likely be delayed by an ongoing strike by unionized workers which began Friday, S&P Global Ratings said Monday.

S&P said the employee walkout by machinists will not immediately affect its credit rating or its longer-term outlook for the planemaker.

The ratings agency said Boeing ( BA ) should be able to weather the financial impact of a strike lasting only a few weeks or so, noting the company had roughly $12.6 billion in cash on hand at the end of June and also has access to around $10 billion in undrawn credit facilities.

Longer term, however, the S&P analysts said, "We believe an extended strike would be costly and difficult to absorb, given the company's already strained financial position." S&P currently rates Boeing ( BA ) debt at BBB-.

Boeing ( BA ) already is bracing for the potential of a longer-term strike, placing a temporarily hold on new hires and also planning sizable reductions in supplier spending, according to a memo to employees from Chief Financial Officer Brian West obtained by multiple news outlets on Monday.

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