Boeing Put on Moody’s Negative Watch List, Rating May Be Downgraded

After Boeing, the US aircraft manufacturer, reorganized its senior management on Monday, Moody’s, the rating agency, said it might downgrade Boeing’s rating and put it on the negative watch list.

Moody’s currently gives Boeing a senior unsecured debt rating of Baa2 with a stable outlook. The latest addition to the negative watch list means that the rating may be downgraded in three months.

Moody’s pointed out that Boeing’s free cash flow may deteriorate due to restrictions on the production of the 737 aircraft, and it also expected that Boeing’s ability to redeem bonds would be affected. Boeing announced on Monday that the group’s CEO and head of commercial aircraft would leave the company.

Another rating agency, Fitch, downgraded Boeing’s rating outlook from positive to stable earlier this month.