Investment Quality: Boeing and Pre-Grounding Profile

investment quality: Like Fitch, Moody's affirmed Boeing's rating at the sixth-highest level of investment quality while cutting the outlook to negative. ; Financial risk relative to the company's pre-grounding profile has meaningfully increased, and the resolution and ultimate impact for Boeing, both financially and reputationally, remain unknown, Moody's said, according to The Japan Times. The grounding of Boeing's best-selling jet will clip operating margins for years to come, while posing a significant public-relations challenge that will linger into next year and beyond, Fitch said earlier in the day. The plane maker faces a 5 billion cash-flow drain this year as it continues to churn out aircraft it can't deliver until regulators around the globe clear the Max to resume commercial flights, Moody's said in a statement Monday. Uncertainty around the return to service of the Max and the growing logistical challenge of getting parked planes back in the air threaten Boeing's credit, Fitch said. Boeing's bonds were unchanged after the Fitch and Moody's reports. There's also a risk that the company will have to make costlier concessions to airlines. (news.financializer.com). As reported in the news.