April 28 (Reuters) - S&P has removed Boeing's ( BA )

rating from CreditWatch negative on improving aircraft

production and lower cash burn, the global ratings agency said

on Monday.

The U.S. planemaker's rating was placed on CreditWatch

negative after about 33,000 of its workers went on a strike,

which halted production of its best-selling jets. A CreditWatch

listing reflects the increased likelihood of a downgrade

S&P said on Monday that Boeing ( BA ) appears to be on track to

recover from the 2024 strike-driven production halt and

persistent manufacturing quality problems.

Earlier this month, Boeing ( BA ) reported that free cash flow

usage, a metric closely watched by investors, improved during

the first quarter to negative $2.3 billion, compared with

expectations of negative $3.6 billion.

Boeing ( BA ) had said it wants to roughly double output of its

top-selling 737 MAX plane from its January level to a

regulator-capped 38 per month by the end of this year.

"We estimate that Boeing ( BA ) has increasing capacity to absorb

unexpected headwinds risks to sustainably higher production and

to near-term aircraft deliveries, including those posed by

tariffs and counter-tariffs with the U.S. and its trading

partners," the ratings agency said.

However, S&P reaffirmed its rating of a negative outlook "to

reflect the potential for a slowing recovery in aircraft

production and deliveries, which could lead to delayed recovery

of its cash flow and credit ratios to levels we view as

consistent with the rating."