By (Reuters) -Fitch said on Friday an extended strike at Boeing (NYSE:BA) could pose a credit ratings downgrade risk and would impact the planemaker’s operations and finance.
Boeing’s U.S. West Coast factory workers walked off the job on Friday after rejecting a contract deal, halting production of its best selling 737 MAX jet.
The first labor strike since 2008 coincides with a period of intense scrutiny of the planemaker by U.S. regulators and airline customers after an incident in January where a door panel detached from a 737 MAX jet during flight.
Boeing’s management will likely need to access new sources of liquidity in the event of a prolonged strike to adhere to its cash targets and to remain within Fitch’s negative rating sensitivity, the ratings agency said.
If the current strike ends before two weeks, it is unlikely to further pressure the rating, Fitch added.
On Thursday, S&P Global Ratings also said an extended strike could delay the planemaker’s recovery and hurt its overall rating.
