Boeing Faces Credit Rating Downgrade Risk, Pursuing Up to $47 Billion in Financing
Kim SangJin
letyou@alphabiz.co.kr | 2024-10-17 03:57:03
[Alpha Biz= Reporter Kim Sangjin] Amid a series of accidents and union strikes, U.S. aircraft manufacturer Boeing is seeking to raise approximately $35 billion (around 47.69 trillion KRW) in funding.
According to the Financial Times (FT), Boeing plans to secure up to $25 billion (approximately 34.7 trillion KRW) in new capital through stock or bond issuance, along with a $10 billion (about 13.63 trillion KRW) credit facility from financial institutions, as reported on October 16 (local time).
In a report submitted to investors, Boeing stated, "This $25 billion capital raising plan will allow us to flexibly secure funds by choosing the best option between stock or bond issuance as needed over the next three years."
The company added, "We have implemented these two prudent measures to ensure liquidity," and stated that "the credit loan agreement will provide Boeing with short-term liquidity while navigating this challenging environment."
Boeing did not specify exactly how much it would raise or when.
Last week, international credit rating agency Standard & Poor’s (S&P) warned that Boeing’s corporate bond credit rating could be downgraded to speculative grade. The market has anticipated that Boeing would need to raise at least $10 billion to maintain its credit rating.
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