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Ratings agency Fitch says extended strike at Boeing poses downgrade risk
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Ratings agency Fitch says extended strike at Boeing poses downgrade risk
Sep 13, 2024 12:19 PM

Sept 13 (Reuters) - Fitch said on Friday an extended

strike at Boeing ( BA ) could pose a credit ratings downgrade

risk and would impact the planemaker's operations and finance.

Boeing's ( BA ) U.S. West Coast factory workers walked off the job

on Friday after rejecting a contract deal, halting production of

its best selling 737 MAX jet.

The first labor strike since 2008 coincides with a period of

intense scrutiny of the planemaker by U.S. regulators and

airline customers after an incident in January where a door

panel detached from a 737 MAX jet during flight.

Boeing's ( BA ) management will likely need to access new sources

of liquidity in the event of a prolonged strike to adhere to its

cash targets and to remain within Fitch's negative rating

sensitivity, the ratings agency said.

If the current strike ends before two weeks, it is unlikely

to further pressure the rating, Fitch added.

On Thursday, S&P Global Ratings also said an extended strike

could delay the planemaker's recovery and hurt its overall

rating.

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