Boeing Plans Bond Sale Post Cash Burn and Credit Rating Cut

Boeing Co. announces plans for a bond sale, marking its first move in the debt market subsequent to reporting quarterly losses and a significant cash burn. Moody's Ratings recently downgraded the company's credit rating to a level slightly above junk status, adding to the aviation giant's financial woes.

According to sources familiar with the matter, Boeing aims to issue bonds in multiple tranches, ranging from three to 40 years in maturity. The longer-term bonds are expected to offer yields approximately 2.65 percentage points higher than Treasuries, reflecting investor concerns over the company's financial health.

Moody's negative outlook underscores the challenges Boeing faces, with all three major credit rating agencies positioning the company perilously close to high-yield status. Despite this, Boeing's Chief Financial Officer, Brian West, reaffirmed the company's commitment to preserving its investment-grade rating. West emphasized Boeing's access to untapped credit lines totaling $10 billion and assured stakeholders of the company's proactive stance in managing liquidity.

Boeing remains vigilant about monitoring its cash reserves and expresses confidence in its ability to access additional funding from the market if necessary. The bond sale represents a strategic move by the aerospace giant to bolster its financial resilience amidst ongoing market uncertainties.

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