Boeing considers stock sale to raise cash and avoid credit downgrade

Boeing is exploring ways to raise up to $15 billion by potentially selling stock and other equity-like securities to avoid having its credit rating downgraded to junk status. Recently, investment banks, including Goldman Sachs, have been reaching out to gauge investor interest in these financial options.

The company needs this cash to maintain its investment-grade credit rating, which is crucial for accessing stable funding and keeping borrowing costs low. Boeing’s finances have been struggling, especially after a door panel incident in January affected production of its 737 MAX jets and a recent workers’ strike impacted operations.

Analysts warn that Boeing needs to act quickly, as it has around $60 billion in debt and significant cash flow losses. If it doesn’t raise enough funds soon, credit agencies like Moody’s may downgrade its rating. While some options are being considered, it’s uncertain whether they will be enough to satisfy credit rating agencies.