Boeing's Credit Rating Challenges

Boeing faces the risk of losing its investment grade credit rating due to a potential prolonged strike by factory workers, which has already halted manufacturing in Seattle. Analysts suggest that a lengthy strike could severely disrupt the company's supply chain and lead to a significant cash burn, estimating losses of up to $3.5 billion in the third quarter. Maintaining minimum cash levels is crucial for Boeing’s operations, as failure to resume production could force the company to seek funding through capital markets, potentially leading to a downgrade by rating agencies. Such a downgrade could deter investors and increase borrowing costs, impacting Boeing's financial stability in a competitive aerospace market.