May 31 (Reuters) - Fitch Ratings lowered its 2024

forecasts for Boeing's ( BA ) aircraft delivery and free cash

flow on Friday as the planemaker grapples with investigations

and slumping production of its strongest-selling jet.

"The delivery forecasts were affected by the Civil Aviation

Administration of China's (CAAC) decision to restrict certain

aircraft model deliveries to Chinese customers while it requests

additional documentation regarding voice recorder and battery

information," Fitch said.

The forecast revision also reflects the U.S. Federal

Aviation Administration's decision to maintain oversight within

Boeing's ( BA ) factories while individually certifying newly produced

aircraft.

Boeing ( BA ) currently has a BBB-minus rating, one level above

"junk" status, with a negative credit rating outlook from

multiple agencies as output of its 737 MAX slipped into the

single digits at times this spring. The U.S. planemaker said

earlier this month it would burn cash rather than generate cash.

Fitch and other agencies do not currently expect these

latest adjustments to result in rating changes.

Jonathan Root, senior vice president, Moody's Ratings,

said on Friday that Boeing's ( BA ) recent comment about negative free

cash flow was unexpected.

"This is another example of ongoing negative surprise

from Boeing ( BA ) while it rehabilitates its commercial airplanes

business," Root told Reuters.

However, he said Boeing's ( BA ) bolstering of liquidity after

a $10 billion May debt issue currently mitigates "potential

ratings pressure."

Nick Varone, a senior director at Fitch, told Reuters

that the possibility of Boeing's ( BA ) burning free cash for 2024 was

generally incorporated into the agency's negative outlook.

Varone cited a return in 737 MAX production rate to

around 38 a month, or inventory reduction as things Fitch is

looking for to get back to a stable outlook.

The rating agency forecasts from 350 to 370 737 MAX

deliveries and about 65-70 787 deliveries in 2024, below

previous expectations of about 400 and 75, respectively.