Fitch raises Boeing's outlook to stable as finances, production improve

Fitch raises Boeing's outlook to stable as finances, production improve

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  • Fitch raises Boeing's outlook to stable as finances, production improve</p>

<p>June 30, 2025 at 10:04 PM</p>

<p>(Reuters) -Global ratings agency Fitch on Monday revised its outlook on U.S. planemaker Boeing to 'stable' from 'negative' and affirmed its 'BBB-' rating, citing improved financial flexibility and production.</p>

<p>The revision in outlook comes as a relief for Boeing, which has resolved its labor dispute and is undergoing a broader transformation under current CEO Kelly Ortberg.</p>

<p>Major ratings agencies had last year warned of a possible downgrade after a strike by about 33,000 workers halted production of Boeing's best-selling jets.</p>

<p>Fitch now expects Boeing to reduce its gross debt below $50 billion in 2026 by repaying notes worth $7.95 billion maturing in that year, following a production ramp-up after the strike and the sale of its Jeppesen unit.</p>

<p>"Sustained operational improvements, particularly continued 737 MAX production progress, should drive FCF (free cash flow) generation and EBITDA leverage metrics consistent with 'BBB-' thresholds," Fitch said in its report.</p>

<p>The ratings agency said it will monitor Boeing's ability to sustain operational momentum and offer clearer guidance on long-term capital allocation, which could support a rating upgrade in six to 12 months.</p>

<p>It also expects Boeing's management to continue reviewing its defense portfolio and sell non-core assets.</p>

<p>In April, S&P had removed Boeing's rating from CreditWatch negative on improving aircraft production and lower cash burn. A CreditWatch listing reflects the increased likelihood of a downgrade.</p>

<p>(Reporting by Shivansh Tiwary in Bengaluru; Editing by Devika Syamnath and Arun Koyyur)</p>

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