Fitch lowers Boeing 2024 aircraft delivery, cash flow forecasts

Fitch Ratings lowered its 2024 forecasts for Boeing's aircraft delivery and free cash flow on Friday as the planemaker grapples with investigations and slumping production of its strongest-selling jet, reports Reuters.
"The delivery forecasts were affected by the Civil Aviation Administration of China's (CAAC) decision to restrict certain aircraft model deliveries to Chinese customers while it requests additional documentation regarding voice recorder and battery information," Fitch said.
The forecast revision also reflects the US Federal Aviation Administration's decision to maintain oversight within Boeing's factories while individually certifying newly produced aircraft.
Boeing currently has a BBB-minus rating, one level above "junk" status, with a negative credit rating outlook from multiple agencies as output of its 737 MAX slipped into the single digits at times this spring. The US planemaker said earlier this month it would burn cash rather than generate cash.
Fitch and other agencies do not currently expect these latest adjustments to result in rating changes.
Jonathan Root, senior vice president, Moody's Ratings, said on Friday that Boeing's recent comment about negative free cash flow was unexpected.
"This is another example of ongoing negative surprise from Boeing while it rehabilitates its commercial airplanes business," Root told Reuters.
However, he said Boeing's bolstering of liquidity after a $10 billion May debt issue currently mitigates "potential ratings pressure."