June 18, 2021

Moody’s still studying the downgrade of Boeing despite sales of 787

Moody’s risk rating agency said Wednesday that the direct sale of twelve Boeing 787 Dreamliners aircraft to Japanese airline All Nippon Airways (ANA) is “positive,” but said it is still studying lowering its credit rating due to the 737 crisis. MAX

This is the first commercial order for Boeing in 2020 and it is expected that the operation, which will conclude with the delivery of the machines in 2022, will report about $ 5,000 million.

However, Moody’s said that although this news has “modestly” positive effects on the liquidity and credit of the aerospace giant, it will not affect the reassessment process of its credit rating down or improve it.

Boeing is immersed in a process of reassessing its credit quality since the company ceased production of its latest 737 MAX model after the unprecedented crisis that caused the failures in its software and that has reported millionaire losses.

At the end of 2018 and in 2019, this Boeing model was involved in two fatal accidents in Ethiopia and Indonesia where 346 people died, incidents that resulted in the prohibition of this model to fly by the Federal Aviation Administration (FAA) in English).

Since the crisis broke out, Boeing has suffered several scandals linked to the 737 MAX that have undermined the credibility of the company and opened up new questions about the safety of this model.

Boeing is waiting for the FAA to lift its veto once the investigations and audits that are still being carried out and that have revealed new failures in the MAX culminate.


Source link