Boeing’s bonds were unchanged after Fitch’s report. The cost to protect its debt against default for five years rose 2.2 basis points, according to data provider CMA.
The company’s benchmark 10-year bond has traded higher since the March 10 crash of the Ethiopian Airlines jet, the second Max accident in a five-month span. The notes were last quoted at 103 cents on the dollar, according to Trace. Boeing was able to sell $3.5 billion of new debt in April, boosting the size of the transaction amid strong demand.
The shares fell 1% to $373.70 at 1:04 p.m. in New York.
Boeing is rated A2 by Moody’s Investors Service and an equivalent A from S&P Global Ratings, the sixth-highest investment-grade rating. Both carry stable outlooks.
S&P said last week that Boeing’s announcement that it will be taking a $5.6 billion pretax charge to compensate for the grounding of the 737 Max wouldn’t affect the company’s credit ratings. But S&P warned that more damaging effects to Boeing’s finances or a “substantial loss” in market share to the 737 could warrant a downgrade.
Regulators around the world banned the plane from flying in March after the Ethiopia crash, the second in five months for the new version of the workhorse 737. A total of 346 people died in the two accidents.