Boeing 787 problems should not impact ratings: Moody's

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London
Source: Flightglobal.com
This story is sourced from Flightglobal.com

Moody's Investors Service believes the Federal Aviation Administration's announcement that all Boeing 787 aircraft have been temporarily grounded is a "negative credit development" for the manufacturer (A2 stable), but that ratings are not expected to be impacted at this time.

"While product performance issues are commonplace on new aircraft programmes, the company faces heightened challenges in quickly resolving problems with the 787's electrical system in order to have the grounding order lifted," notes Russell Solomon, Moody's senior vice president and lead analyst for Moody's.

"This could pose new operating and financial pressures for Boeing, including further delay in delivery schedules and future order flow, as well as on-going reputational risk," adds Solomon.

Nevertheless, Moody's report notes that Boeing continues to "perform well" on its other aircraft programs and business lines while maintaining a strong liquidity profile, and as such the company's existing ratings are unaffected at this time.