Increased Boeing financing for deliveries unlikely with Senate vote for Ex-Im renewal: Wells Fargo

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A US Senate vote to reauthorise the US Export-Import Bank this week decreases the likelihood that Boeing's finance arm will need to extend its balance sheet to fund upcoming deliveries, says Wells Fargo in a research note.

"With Ex-Im renewal passing the Senate on May 15, the risk of Boeing Capital Corporation having to increase its financing has declined," Wells Fargo writes in a research update based on Boeing's investors meeting held this week.

Well Fargo also notes Boeing's outlook reflects a 23-26% year-over-year increase in aircraft deliveries this year from 2011, but the company does not expect to "increase its Boeing Capital financing portfolio" to support this growth.

Separately, Wells Fargo says Boeing can expect the conversion of "several hundred more" 737 Max commitments into firm orders this year.

The research firm team notes the Airbus A320neo has booked more orders to date, but Boeing expects to reach order book parity with Airbus by the end of 2013.