FAA approval of Boeing 787 battery fix is credit positive

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

Approval by the US Federal Aviation Administration of certain of Boeing's design modifications to its 787 battery system is credit positive for the aircraft manufacturer, according to Moody's Investors Service.

"Aside from some reputational damage and disruption of engineering resource and airline customers, and assuming no further incident(s), Boeing looks to be in reasonably good shape to continue its production ramp-up and resume deliveries of the Dreamliner, which underpins much of the company's growth prospects over the next few years and without nearly as much financial impact as there could have been," says Russell Solomon, Moody's senior vice president and lead analyst for the ratings agency.

Still needed are approvals from other regulatory authorities around the world where the aircraft operate, although Moody's expects this will "shortly" follow.

Moody's notes Boeing's financial guidance should not be significantly affected by the battery issue.